Gold Price Forecast: Battle lines well-defined below $1800 – Confluence Detector

Gold price is trading back and forth in a narrow trading range, recovering a part of Tuesday’s decline. Despite Fed Chair Jerome Powell’s dovish take on the monetary policy, gold price is unable to find an impetus to extend the rebound. An uptick in the US Treasury yields appears to be capping the recovery gains in gold, as the bull-bear tug-of-war extends. The return of the risk-off sentiment coupled with the US dollar’s latest leg down cushions gold’s downside. Investors reassess last week’s hawkish Fed surprise, as Powell downplays inflation concerns ahead of Friday’s all-important PCE inflation release.

Read: Markets search for direction ahead of Powell testimony

Gold Price: Key levels to watch

The Technical Confluences Detector shows that gold price is eyeing a sustained move below p0owerful support at $1779, where the Fibonacci 38.2% one-day coincides with the Bollinger Band 4H Middle.

Sellers will then aim for the confluence of the Fibonacci 23.6% one-day and previous low on four-hour at $1776.

The next relevant support awaits around the $1770 region, the meeting point of the previous day’s low and pivot point one-day S1.

Gold bears need to crack the previous month’s low of $1766, in order to unleash additional downside.

Alternatively, gold bulls must clear a dense cluster of healthy resistance levels stacked up around $1784, which is the convergence of the Fibonacci 61.8% one-day, Bollinger Band one-hour Upper and the previous high four-hour.

Fierce resistance at $1790 is likely to challenge the bullish commitments. At that level, the Fibonacci 23.6% one-wee intersects with the previous day’s high.

The last critical barrier for the bulls is seen at the SMA100 one-day at $1794.

Here is how it looks on the tool       


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

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hovers around 1.1900, retains weekly gains

The EUR/USD pair trades around the 1.19 mark after the Eurozone Q2 Prelim GDP beat estimates with 2% while US PCE inflation rose by less than anticipated in June, printing at 3.5% YoY. Risk-on mood persists.


GBP/USD retreats after flirting with 1.4000

GBP/USD retreated from near the 1.4000 level, but the greenback remains away from investors' radar. Optimism over the Brexit issue and the declining trend in new COVID-19 cases in the UK offers support to the pound.


XAU/USD slides to $1,820 area, downside seems limited

Gold traded with a mild negative bias around the $1,825 region, or daily lows, during the early North American session, albeit lacked any follow-through selling.

Gold News

Shiba gets listed on eToro as demand for SHIB skyrockets

Leading investment platform eToro has been adding cryptocurrency assets on popular demand from users. The Dogecoin killer recently amassed 600,000 holders despite range-bound price action. 

Read more

NIO shares rise again as Wall Street shrugs off recent China woes

NYSE:NIO added 1.86% as EV and China stocks bounced back again. Nio rides higher as industry leader Tesla gets some major upgrades. Nio rival XPeng releases a refreshed look for its compact SUV.

Read more