Gold Price Forecast: XAU/USD eyes above $2,000 as central banks favor rate hike pause – Confluence Detector

Gold price (XAU/USD) is eyeing a weekly settlement above the psychological resistance of $2,000.00. The precious metal is likely to attempt a close above $2,000.00 for the third time on a daily basis this week as strength in the yellow metal is backed by multiple factors. From the overall weak US Dollar Index (DXY) to the potential banking crisis, and consideration of policy-tightening termination from the Federal Reserve (Fed), the Bank of England (BoE), and the Reserve Bank of Australia (RBA), all economic indicators are fueling strength in the Gold bulls.

S&P500 futures are trying to settle their feet after a few volatile sessions as US Treasury Secretary Janet Yellen has stated that the government is ‘prepared for additional deposits actions if warranted’. Widening insurance blanket for deposits has infused some confidence among market participants. The attempted recovery by the US Dollar Index (DXY) is the only factor, which is barricading the Gold price from the continuation of its upside journey.

Meanwhile, US Treasury yields have been battered after signals of pausing the rate-hike cycle by the Federal Reserve (Fed). Softer US treasury yields have improved the appeal for Gold as safe-haven.

Gold Price: Key levels to watch

The Technical Confluence Detector is demonstrating that Gold bulls are defending the critical support at $1,990.00 where the previous week's high and daily 38.2% Fibonacci retracement coincides.

A decisive move above $2,005.04, where the daily high and upper Bollinger Band (4H) coincides, would strengthen Gold bulls further, which will drive them toward Monthly second resistance pivot at $2020.

In an alternate scenario, the downside will be triggered if the Gold price skids below $1,960.00, which is the confluence of the previous month's high and weekly 23.6% Fibonacci retracement. A confident move below the aforementioned support would drag it towards $1,950.00, which is daily Support 2 gauged by the Pivot table.

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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.