Gold Price Forecast: XAU/USD bulls remain poised to test $1,831 and $1,837 – Confluence Detector

Gold price is consolidating near weekly highs, as the US dollar attempts a bounce in tandem with the Treasury yields this Thursday. The greenback got smashed on ‘sell the fact’ trading after the 7% rise in the US annualized inflation in December cemented a March Fed rate hike, which was almost priced in by the market. Despite the pullback in gold price, the upside bias remains intact, courtesy of a bullish technical setup on the daily chart.

Read: US Consumer Inflation Soars: Federal Reserve March rate hike looms

Gold Price: Key levels to watch

The Technical Confluences Detector shows that the gold price needs to crack strong resistance at $1,826, the Fibonacci 23.6% one-day.

The next critical upside hurdle is pegged at the previous month high of $1,831, above which bulls will aim for the pivot point one-day R2 at $1,837.

A firm break above the latter will open gates for a rally towards the pivot point one-day R3 at $1,845.

On the flip side, the Fibonacci 38.2% one-day at $1,821 is seen capping immediate pullbacks.

The confluence of the SMA10 four-hour, pivot point one-day S1 and Fibonacci 61.8% one-day at $1,819 will be on the sellers’ minds.

Further down, the previous day’s low of $1,815 could be retested, opening floors for a test of $1,812, where the Fibonacci 23.6% one-month and Fibonacci 61.8% one-week coincide.

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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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