- Gold Price knocked down by the US dollar resurgence on recession fears.
- Bond massacre triggered US yields rally, adding to the weight on XAU/USD.
- Gold markets remain positioned for the next leg lower amid a dramatic week.
Gold Price is licking its wounds after failing another attempt to find a foothold above the $1,900 mark. The less hawkish Fed-led dollar sell-off turned out to be temporary, as recession fears hit the market after the BOE’s warning and triggered massive risk-off flows into the safe-haven greenback. ‘Sell everything’ mode returned, as bond markets tumbled alongside equities. Amid uncertain economic times, in the face of the Ukraine crisis and China’s covid lockdowns, the king dollar will remain the go-to asset at the expense of gold price.
Also read: US April Nonfarm Payrolls Preview: Analyzing gold's reaction to NFP surprises
Gold Price: Key levels to watch
The Technical Confluences Detector shows that Gold Price is attempting a minor bounce, looking to recapture the critical resistance at $1,874, which is the intersection of the previous day’s, month’s and week’s low.
The SMA5 one-day at $1,878 will be probed if gold bulls flex their muscles on the road to recovery.
Further up, gold buyers would aim for the Fibonacci 23.6% one-day at $1,881, above which a fresh upswing towards $1,887 will be in the offing. That level is the confluence of the SMA50 four-hour, Fibonacci 38.2% one-day and Fibonacci 23.6% one-week.
Alternatively, the immediate support is seen at the pivot point one-week S1 at $1,869. The next downside target is envisioned at the pivot point one-day S1 at $1,863.
A sharp sell-off on a sustained breach of the latter cannot be ruled out towards the $1,850 demand area, where the pivot point one-month S1 coincides with the Bollinger Band one-day Lower.
The straw that will break gold bulls’ neck is pegged at $1,835, the SMA200 one-day.
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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.
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