Gold Price Forecast: XAU/USD eyes deeper losses if $1805 support caves in – Confluence Detector

  • Gold price starts August in the red amid a rebound in risk appetite ahead of ISM.
  • US infrastructure bill optimism, DYX weakness fails to offer reprieve to gold bulls.
  • Gold: Bulls hesitate as focus shift to NFP.

The downbeat tone around gold price remains unabated this Monday, as the bears extended their control after Friday’s steep drop. The progress on the US infrastructure bill and broad US dollar weakness fail to offer any reprieve to the bulls, as gold price heads towards the $1800 mark. The risk-on rally in the global stocks combined with stabilizing Treasury yields weighs negatively on gold price. Investors also ignore the mounting tensions surrounding the Delta covid variant spread globally. Attention now turns towards US ISM Manufacturing PMI and corporate earnings reports for fresh trading impulse.

Gold Price: Key levels to watch

The Technical Confluences Detector shows that gold has breached powerful support at $1808, which was the convergence of the Fibonacci 38.2% one-month, SMA50 four-hour and SMA10 one-day.

Therefore, sellers now target the $1805 support, where the Bollinger Band one-hour Lower lies.

The next relevant cushion awaits at the SMA100 one-day at $1801, below which a drop towards the previous week's lows around $1790 cannot be ruled out.

If the buyers recapture the abovementioned key support at $1808, which has now turned into resistance, gold price could seek a retest of the SMA100 four-hour at $1810.

Further up, $1813 could act as a stiff resistance. At that point, the SMA100 one-hour coincides with the previous high four-hour and SMA5 four-hour.

The Fibonacci 23.6% one-day at $1816 could be the next target of interest for gold bulls.

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.


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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD remains below 1.1750 on dismal German IFO, risk-off mood

EUR/USD is holding steady below 1.1750 after German IFO surprised to the downside. Hawkish Fed, Evergande risks amid stimulus hopes keep investors wary. The US dollar attempts a bounce amid a cautious mood, firmer Treasury yields. Powell’s speech awaited.


GBP/USD battles 1.3700 amid risk-aversion

GBP/USD is battling 1.3700, as the US dollar holds its bonce amid worsening market mood. The pound reverses hawkish BOE-led gains, as Brexit woes and China Evergrande uncertainty weigh. Focus shifts to Powell's speech. 


XAU/USD clings to gains above $1,750, upside seems limited

Gold gained some positive traction on the last trading day of the week and recovered a part of the overnight slump to the lowest level since August 11.

Gold News

Axie Infinity nears the end of bearish outlook as AXS contemplates 25% gains

A brief technical and on-chain analysis on Axie Infinity price. Here, FXStreet's analysts evaluate how AXS behaves as it trades above key support.

Read more

German Elections Preview: Three EUR/USD scenarios for the post-Merkel dawn

Who will succeed Angela Merkel at the helm of Europe's largest economy? The long-serving beacon of stability is stepping down as Germany's Chancellor after 16 years, and her big shoes leave a hole in the old continent's leadership. 

Read more