Gold Price Forecast: XAU/USD eyes critical upside target at $1,835 – Confluence Detector

Gold price pulls back from multi-week highs amid Fed rate hikes speculation.
Risk-on sentiment at the start of 2022 also bodes ill for the bright metal.
Gold 2022 Outlook: Correlation with US T-bond yields to drive yellow metal.

Dhwani Mehta FXStreet

Gold is feeling the pull of gravity on the first trading day of 2022, in what seems to be a correction from six-week highs of $1,832. Expectations that the upcoming US first-tier economic events, including the ISM PMIs and Nonfarm payrolls, will confirm a March Fed rate hike are keeping the bulls on the back foot. Additionally, the upbeat market mood is collaborating with the pullback in gold price.

Read: Gold Price Forecast: XAU/USD is down starting out 2022 but not out

Gold Price: Key levels to watch

The Technical Confluences Detector shows that the gold price is trading below strong resistance of $1,827, where the Fibonacci 23.6% one-day coincides with the previous high four-hour and SMA10 one-hour.

The next topside hurdle is seen at the previous day’s high of $1,830, above which the multi-week top of $1,832 will be challenged once again.

The pivot point one-day R1 at $1,835 will be a tough nut to crack for gold bulls.

On the flip side, strong support is pegged at $1,821, the intersection of the Fibonacci 61.8% one-day, Fibonacci 23.6% one-week and previous low four-hour.

The next relevant cap is seen at 1,818, which is the pivot point one-day S1. Friday’s low of $1,815 will be next on sellers’ radars.

The convergence of the SMA100 one-hour and Fibonacci 23.6% one-month at $1,812 will be the line in the sand for gold buyers.

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.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY jumps toward 157.00 after BoJ's expected rate hike to 1.25%

USD/JPY picks up fresh bids and jumps toward 157.00 in the Asian session on Friday after the Japanese Yen came under renewed selling pressure despite the Bank of Japan's (BoJ) interest rate hike to 1.25% and a somewhat hawkish Monetary Policy Statement. All eyes now remain on BoJ Governor Ueda's press conference for further trading impetus.

Gold: Acceptance above $4,400 is critical for buyers

Gold holds the previous recovery around $4,350 early Friday; buyers still cautious. US Dollar trades subdued amid retreating Oil prices and US Treasury bond yields. Gold settled Thursday above the 100-day SMA near $4,320, with a neutral daily RSI.

S&P Global to acquire OpenZeppelin in on-chain security expansion

S&P Global (SPGI) has agreed to acquire blockchain security firm OpenZeppelin as the financial data and analytics company expands its on-chain risk assessment capabilities. The acquisition, announced Thursday, will bring OpenZeppelin’s smart contract security services, development tools and open-source libraries into S&P Global’s existing digital asset and risk assessment business.

Silver is the metal the Copper rebound left behind

Copper producers answered a price near $14,000 a tonne by making more copper in the first half of 2026, and the way they did it means the silver shortfall gets no relief from the mines that supply more than a quarter of the world's silver. Copper is produced two ways.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.