Gold Price Forecast: XAU/USD downside opening up towards $1,817 – Confluence Detector

Gold Price extends the previous sell-off, with more pain in the offing.
Hawkish Fedspeak, pre-US inflation anxiety boost the USD despite falling yields.
Gold Price Forecast: On its way to challenging the $1,800 threshold.

Dhwani Mehta FXStreet

Gold Price is testing the critical support, licking its wounds near three-months troughs below $1,850. The resurgent US dollar haven demand amid looming global growth and inflation fears weighed negatively on Gold Price, as traders ignored the pullback in the Treasury yields from multi-year highs. Additionally, hawkish Fedspeak also boosted the US dollar, exacerbating the pain in XAU/USD. Attention turns towards the critical US inflation release for a fresh direction in Gold Price.

Also read: US April CPI Preview: Has inflation peaked?

Gold Price: Key levels to watch

The Technical Confluences Detector shows that the Gold Price is testing the bullish commitments at critical support of $1,836. At that level, the SMA200 one-day, the previous day’s low and SMA5 one-hour coincide.

The next relevant support awaits at the previous low four-hour at $1,833, below which a fresh drop towards the pivot point one-day S1 at $1,827 cannot be ruled out.

Further down, sellers will target the pivot point one-week S2 at $1,822. The last line of defense for gold bulls is seen at $1,817, the pivot point one-day S2.

On the upside, any recovery could gain momentum only on a sustained break above the previous high four-hour at $1,841, above which the Fibonacci 23.6% one-day could be tested.

The confluence of the pivot point one-month S1 and Fibonacci 38.2% one-day at $1,847 will come into play.

The previous week’s low at $1,850 could be also on the buyers’ radars, opening gates towards $1,853, the intersection of the Fibonacci 61.8% one-day and pivot point one-week S1.

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.

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