Gold Price Forecast: Battle lines well-defined for XAU/USD ahead of key US data – Confluence Detector

Gold price remains at the mercy of the Treasury yields’ price action.
US economic events and coronavirus updates will remain in focus.
Gold 2022 Outlook: Correlation with US T-bond yields to drive yellow metal.

Dhwani Mehta FXStreet

Will the Fed hike rates in March? Are surging covid cases globally putting pressure on the health infrastructure? These factors will continue to play out in the coming days, impacting the price action in the Treasury yields and gold. Traders will also shift their attention towards the US top-tier economic releases due later in the week, including the ISM PMIs, FOMC minutes and Nonfarm Payrolls, for the next direction in the bright metal.

Read: New year, new hope for gold and silver investors

Gold Price: Key levels to watch

The Technical Confluences Detector shows that the gold price is facing strong resistance around 1,807, which is the convergence of the Fibonacci 23.6% one-day, Fibonacci 61.8% one-week and SMA50 one-day.

The next significant barrier is seen at $1,811, the confluence of the Fibonacci 38.2% one-day, SMA5 one-day and Fibonacci 23.6% one-month.

Further up, the Fibonacci 38.2% one-week at $1,814 will challenge the bearish commitments.

On the flip side, bears need acceptance below $1,800, where the SMA200 and SMA100 four-hour meets with the SMA200 one-day.

Sellers will then target the Bollinger Band one-day at $1,797.

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.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD stays defensive below 1.1600 as USD rebounds

EUR/USD trades marginally lower below 1.1600 in the European session on Friday. The pair edges down as the US Dollar rebounds slightly after Thursday’s massive profit-taking pullback. Looming US-Iran uncertainty revives the haven demand for the Greenback, while the Euro takes a breather after the hawkish ECB hike-led rally.

GBP/USD holds steady above 1.3400 ahead of US sentiment data

GBP/USD recovers losses and trades modestly flat above 1.3400 in the European trading hours on Friday. The UK Gross Domestic Product (GDP) declined by 0.1% in April, limiting the pair's upside amid renewed US Dollar weakness. The focus now remains on the US Michigan Consumer Sentiment data.

Gold flatlines above $4,200; bearish bias intact amid US-Iran risks

,Gold recovers modest intraday losses, and turns flat during the first half of the European session, though it remains below the daily peak. Despite uncertainty over the US-Iran peace deal, a steadier mood fails to help the US Dollar in preserving its gains. This is seen as a key factor offering some support to the commodity.

Pi Network: Bulls attempt comeback as bearish strength fades

Pi Network (PI) is trading at around $0.120 after a modest recovery the previous day. Despite this recent rebound, traders should be cautious as a scheduled unlock of 14.8 million PI tokens on Friday could limit the token's recovery potential by increasing market supply. Meanwhile, the technical outlook is showing early signs of fading bearish momentum, suggesting a short-term bounce.

UoM Consumer Sentiment Index expected to remain depressed near historical lows in June

The University of Michigan (UoM) will release the preliminary estimate of June’s Consumer Sentiment Index on Friday. The report is expected to show that consumers’ confidence remains depressed.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.