Gold Price Forecast: $1802 is a tough nut to crack on road to recovery – Confluence Detector


Gold price is looking to recover lost ground while finding support near the two-week lows of $1782 earlier on. The rebound in gold price comes on the heels of a broad retracement in the US dollar from the weekly tops. Mounting economic growth concerns amid the Delta covid variant contagion have triggered a risk-off wave across the board, which boosts the US Treasuries while knocking off the yields. The weakness in the Treasury yields dragged the greenback lower against it main peers, prompting the bounce in gold.

However, the further upside appears elusive in gold price amid hawkish Fedspeak and a potential tapering by the ECB at its policy decision later this Thursday.

Read: Gold Price Forecast: XAU/USD seems vulnerable, $1,775 area holds the key for bulls

Gold Price: Key levels to watch

The Technical Confluences Detector shows that gold price is set to challenge powerful barrier at $1798 on its road to recovery. That level is the confluence of the SMA50 one-day and Bollinger Band one-day Middle.

Further up, the intersection of the previous week’s low, the previous day’s high and SMA100 four-hour around $1800-$1802 will offer stiff resistance to gold bulls.

Recapturing the latter will open up doors towards $1810, the critical resistance comprising of the SMA200 one-day, pivot point one-week S1 and SMA10 one-day.  

Meanwhile, the immediate downside remains cushioned by the intersection of the Fibonacci 38.2% one-day, pivot point one-week S2 and SMA5 four-hour at $1790.

The next bearish target for sellers is seen at $1787, the Fibonacci 23.6% one-day.

Further south, the confluence of the previous day’s low and Fibonacci 161.8% one-week at $1782 will be the level to beat for gold bears.

Here is how it looks on the tool

fxsoriginal

About Technical Confluences Detector

The TCD (Technical Confluences Detector) 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.  If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.

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

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.

EUR/USD News

GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 

GBP/USD News

XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more

Forex MAJORS

Cryptocurrencies

Signatures