Having found support once again near Friday’s low of $1912, gold recovered some ground on Wednesday. The XAU bulls, however, lacked a follow-through ahead of Thursday’s Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium.
Global economic worries resurfaced and offset the US-China trade deal optimism, underpinning gold’s safe-haven appeal. Attention turns towards the US Durable Goods release, especially after the US CB Consumer Confidence Index hit a six-year low.
How is gold positioned on the charts?
Gold: Key resistances and supports
The tool shows that gold remains capped by the immediate barrier at $1930, the intersection of the Fibonacci 61.8% one-day and SMA10 on four-hour.
Gold needs to take out the critical hurdle at $1932 to revive the recovery momentum. That level is the confluence of the Fibonacci 23.6% one-month, SMA50 one-hour and Bollinger Band 15-minutes Upper.
The next relevant resistance is aligned at $1936, where SMA100 on one-hour and Fibonacci 23.6% one-week coincide.
Acceptance above the latter will trigger a fresh rally towards $1951, which is the convergence of Fibonacci 38.2% one-week and Bollinger Band four-hour Upper.
On the flip side, the bears are struggling around $1926, the confluence of the SMA200 four-hour and SMA100 on 1-minutes.
A bunch of minor support levels could stagger the declines, which could see a test of the previous week low of $1912.
Below that level the last straw for the bulls, placed at $1906, will get tested.
Here is how it looks on the tool
About the Confluence Detector
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