Gold Price Analysis: XAU/USD risks falling to $1,765 as Fed fear grows– Confluence Detector


Will the Federal Reserve announce it will taper down its bond purchases in its next meeting? Gold bulls dread the moment in which the world's most powerful central bank begins printing fewer dollars. Ahead of the critical meeting next month, the Fed publishes minutes from its previous decision, and that could rock markets. Concerns about covid are also weighing on the mood. 

How is XAU/USD positioned on the charts?

The Technical Confluences Detector is showing that gold is hovering above critical support at $1,780, which is the convergence of the previous week's high, the previous daily low, the Pivot Point one-day Support 1, and more.

If the yellow metal fails to cling onto that level, it could extend its falls until $1,765, which is a cluster of lines including the PP one-day S3 and the previous month's low. 

Resistance is at $1,788, which is the confluence of the Simple Moving Average 200-15m, the Bollinger Band 1h-Middle, the SMA 10-1h, the SMA 5-4h and more.

Further above, the upside target in case the Fed is dovish, awaits at $1,804, which is where the Fibonacci 161.8% one-day hits the price. 

XAU/USD resistance and support levels

Confluence Detector

The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.

Learn more about Technical Confluence

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD struggles to gather momentum, stays near 1.0350

EUR/USD struggles to gather momentum, stays near 1.0350

EUR/USD is having a difficult time gathering bullish momentum and fluctuating at around 1.0350 in the American session. With Wall Street's main indexes pushing lower after the opening bell, the US Dollar is gathering strength and not allowing the pair to gain traction.

EUR/USD News

GBP/USD falls below 1.2000 as mood sours

GBP/USD falls below 1.2000 as mood sours

GBP/USD has turned south and declined below 1.2000 in the second half of the day on Tuesday. The negative shift witnessed in risk sentiment seems to be helping the US Dollar find demand and forcing the pair to stay on the back foot.

GBPUSD News

Gold rebound loses momentum, upside limited below $1,760

Gold rebound loses momentum, upside limited below $1,760

Gold is rising on Tuesday, recovering after Monday’s slide. XAU/USD bottomed during the Asian session It then started to recover amid a rally of commodities and also emerging market currencies. 

Gold News

Bitcoin price hears jingle bells rolling in

Bitcoin price hears jingle bells rolling in

Bitcoin price looks set to rally substantially higher now that the social unrest in China is calming down. BTC could stage a 17% rally in the coming week.

Read more

Alibaba shares advance 5% on reduced China covid restrictions

Alibaba shares advance 5% on reduced China covid restrictions

BABA stock has jumped more than 5.2% in Tuesday’s premarket to $80 after China's National Health Commission said covid-related lockdowns should end as soon as possible. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures