Gold Price Forecast: XAU/USD bulls cheer $2,010 breakout, US data eyed – Confluence Detector

Gold price prods 13-month high amid sluggish market ahead of key US data.
US Dollar struggles around multi-day low and favors XAU/USD bulls.
Clear break of $2,010 support confluence keeps Gold buyers hopeful.

Anil Panchal FXStreet

Gold price (XAU/USD) slowly pushes its northward limits to $2,025 as it renews the 13-month high amid broad US Dollar weakness. In doing so, the precious metal benefits from the market’s indecision amid hawkish Fed talks and receding market bets on the aggressive rate hikes by the US central bank. Furthermore, threats to the US Dollar’s reserve currency status and downbeat Treasury bond yields also add strength to the XAU/USD price. On the same line could be the quote’s successful break of the $2,010 key resistance, now immediate support.

It should be noted, however, that the cautious mood ahead of the top-tier US data concerning jobs and activities reins the Gold price amid the recently disappointing outcomes. Additionally challenging the Gold buyers could be the geopolitical woes surrounding Russia and China. Even so, the XAU/USD bulls stay hopeful amid its traditional haven status, as well as broad US Dollar weakness.

Also read: Gold Price Forecast: XAU/USD bulls target $2,043 on pennant breakout, US data holds the key

Gold Price: Key levels to watch

Our Technical Confluence Indicator shows that the Gold price stays firmer past the $2,010 key support confluence to poke the previous yearly high marked in March 2022. The stated support comprises the previous monthly high and Pivot Point one-week R2.

It’s worth noting that the Fibonacci 161.8% on weekly formation joins the middle band of the Bollinger on a one-hour chart to check the immediate downside of the XAU/USD near $2,015.

That said, the $2005 level encompasses the Fibonacci 38.2% in one-day and acts as an additional downside filter ahead of highlighting the $2,000 psychological magnet.

Meanwhile, Pivot Point one-week R3 highlights $2,035 as an immediate upside hurdle to watch for the Gold buyers.

Following that, the Pivot Point one-month R1, near $2,050, appears a tough nut to crack for the bulls before directing them to the previous yearly top of $2,070.

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

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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