Gold Price Analysis: XAU/USD sellers need downside break of $1,889 for re-entry – Confluence Detector

Anil Panchal FXStreet

Having surged for consecutive eight quarters, gold kick-starts October on a positive note, currently up 0.38% intraday to around $1,893, before Thursday’s European session. In doing so, the metal defies the previous day’s downbeat performance that dragged the quote from one week high.

While searching for reasons in today’s quiet session, the US dollar weakness could be spotted as the main catalyst. American policymakers’ inability to agree on the much-awaited stimulus seems to play a role in the latest weakness of the greenback. As portraying the same, the US dollar index (DXY) drops 0.15% intraday to 93.70 as we write.

It should also be noted that the surging fears of the coronavirus (COVID-19) and Brexit uncertainty are additional pushes for the gold buyers.

Key levels to watch

Out own Technical Confluences Indicator portrays the yellow metal’s positive moves unless it drops below $1,889 level comprising 100 and 200 SMA on a 15-minute chart as well as the middle band of the Bollinger on the hourly formation of the chart.

Meanwhile, the $1,990 round-figures, also comprising 38.2% Fibonacci retracement of weekly plays offer immediate support.

Should the quote drops below $1,989, 23.6% Fibonacci retracement of the metal’s one-month moves, around $1,883, will be in the spotlight.

On the contrary, $1,900 and the 38.2% Fibonacci retracement of the one-month waves, near $1,904, can restrict the bullion’s short-term upside.

Here is how it looks on the tool

About the Confluence Detector

The TCI (Technical Confluences Indicator) 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

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

GBP/USD clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.