Gold Price Forecast: XAU/USD eyes $1,869 and $1,873 on road to recovery – Confluence Detector
- Gold price rebounds from $1,850 key support as yields pullback.
- Gold remains unfazed by the Fed tightening calls after strong US data.
- Gold capitalizes on inflation fears, buyers look to retain control.
Gold price is staging an impressive rebound on Wednesday, having found strong support at the midpoint of the $1,800 level. The renewed upside in gold price comes on the back of a retreat in the US Treasury yields, which has taken the wind out of the dollar’s rally to 16-mnoth highs. Markets remain risk-averse amid growing concerns over inflation, adding to upturn in the inflation hedge, gold. In absence of first-tier US economic data, the dynamics in the yields and the dollar will continue to influence gold price alongside a slew of Fedspeak.
Read: Gold Price Forecast: XAU/USD pullback points to a fresh upswing towards $1,900?
Gold Price: Key levels to watch
The Technical Confluences Detector shows that gold price is eyeing a sustained move above $1,861, which is the convergence of the Fibonacci 38.2% one-day, SMA10 four-hour and SMA100 one-hour.
The next significant upside barrier for gold buyers is seen at $1,869, where the previous week’s high and pivot point one-day R1 coincide.
Acceptance above the latter will expose the Bollinger Band one-day Upper at $1,873, above which the previous day’s high of $1,877 will get challenged.
Alternatively, a firm break below $1,857, the confluence of the Fibonacci 23.6% one-day and one-week, will reinforce the recent bearish momentum towards the pivot point one-month R2 at $1,850.
Minor support of the Fibonacci 38.2% one-week at $1,847 will be the next stop for gold bears.
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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.
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.
