Gold Price Forecast: XAU/USD eyes a rally towards $1,878 amid Ukraine tensions – Confluence Detector


Share:

Gold price is taking a breather after a blistering $40 rally seen on Friday, which drove the bright metal to the highest level in three months at $1,866. Reports about a potential Russian invasion of Ukraine this week roiled markets and triggered a massive flight to safety into gold price. The bullion remains in a win-win situation going forward amid rising inflation concerns and as investors watch over the geopolitical risks concerning Ukraine. Gold traders also await Wednesday’s US Retail Sales data and the Fed minutes for fresh directives.

Read: Russia could initiate military action before the end of the Winter Olympics: Could this affect stocks?

Gold Price: Key levels to watch

The Technical Confluences Detector shows that the gold price has recaptured powerful support now resistance at $1,855, as its corrective pullback fades.

That level is the convergence of the Fibonacci 23.6% one-day and the previous month’s high.

The immediate upside barrier is seen at the Bollinger Band one-day Upper at $1,859. The next bullish target appears at the previous day’s high of $1,866.

Acceptance above the latter will fuel a fresh upswing towards $1,878, the pivot point one-day R1.

On the flip side, if gold price finds a strong foothold below the aforementioned $1,855, then the Fibonacci 23.6% one-week at $1,851 will get tested.

Further down, the Fibonacci 38.2% one-day at $1,848 will come to buyers’ rescue. The last line of defense for gold bulls is aligned at $1,843, the intersection of the Fibonacci 38.2% one-week, SMA10 four-hour and pivot point one-month R1.

Here is how it looks on the tool

fxsoriginal

 

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.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

AUD/USD bounces toward 0.6650 on China stimulus optimism

AUD/USD bounces toward 0.6650 on China stimulus optimism

AUD/USD is bouncing back toward 0.6650 on Thursday. The pair turns hopeful that the downbeat Chinese NBS PMI data would prompt China's authorities to ramp up stimulus measures. A subdued US Dollar performance is aiding the pair 's rebound ahead of key US PCE inflation data. 

AUD/USD News

EUR/USD remains capped below 1.1000, EU/ US inflation data eyed

EUR/USD remains capped below 1.1000, EU/ US inflation data eyed

EUR/USD is struggling below 1.1000, as the US Dollar clings to recovery gains in Asian trading hours on Thursday. Wednesday's softer-than-expected German and Spain inflation data weighed on the Euro. Investors await the Eurozone inflation data on Thursday for fresh impetus. 

EUR/USD News

Gold buyers turn cautious ahead of US inflation data, monthly close

Gold buyers turn cautious ahead of US inflation data, monthly close

Gold price is consolidating the previous pullback from six-month highs of  $2,052 in Asian trading on Wednesday, treading water amid the end-of-the-month flows while awaiting the critical United States (US) Core Personal Consumption Expenditures (PCE) Price index data.

Gold News

FTX token FTT jumps 8% as exchange wins approval to start selling $744 Million in Grayscale and Bitwise assets

FTX token FTT jumps 8% as exchange wins approval to start selling $744 Million in Grayscale and Bitwise assets

FTX token (FTT) has jumped 8% following news that a US bankruptcy court of Delaware has allowed the now-defunct cryptocurrency exchange to move forward with a November 6 request.

Read more

Fed cuts on the table

Fed cuts on the table

The apparent sea change in tone from the Federal Reserve regarding potential rate cuts in 2024 is hugely significant. While "insurance cuts" have been considered an option, recent comments from Fed officials suggest a more explicit willingness to cut rates in response to lower inflation.

Read more

Forex MAJORS

Cryptocurrencies

Signatures