Gold Price Forecast: XAU/USD faces a wall of resistances eyeing $1,775, US NFP – Confluence Detector


  • Gold price is set for a positive close on the week amid broad-based US Dollar weakness.
  • Federal Reserve’s dovish outlook, light trading to continue supporting Gold price.
  • Gold price is poised for a hard battle heading into the US NFP week, $1,775 remains in sight.  

Gold price is challenging bearish commitments near the $1,760 round figure, extending its upbeat momentum into the fourth straight trading day. The bright metal is on track to book weekly gains after a negative end a week ago. Broad-based US Dollar weakness remains the underlying catalyst behind the Gold price recovery, as the dovish Federal Reserve minutes offered additional legs to the ongoing correction in the greenback from over two-decade highs. Weak United States data also deepened the pain in the buck while traders preserved the weekly gains in Gold price amid the Thanksgiving week. The US Treasury yields also bore the brunt of the Fed officials agreeing on the need for smaller rate increments going forward. Attention now turns towards the US Nonfarm Payrolls (NFP) due for release in the week ahead, which is one of the most significant data watched out for before the December FOMC meeting.

Also read: Gold triple bottom leads prices higher

Gold Price: Key levels to watch

The Technical Confluence Detector shows that the gold price is looking to clear a powerful resistance at $1,757, the convergence of the Fibonacci 23.6% one-day and one-week.

The immediate upside remains capped by the previous day’s high at $1,759, where the SMA10 one-day also coincides.

The next significant topside barrier is placed at $1,762, which is the Fibonacci 38.2% one-week.

A sustained move above the latter will initiate a meaningful upside toward the pivot point one-day R3 at $1,769.

Further up, $1,775 will be a tough nut to crack for Gold bulls. At that level, the pivot point one-month R2 intersects with the Fibonacci 61.8% one-week.

On the flip side, the immediate support is pegged at the Fibonacci 61.8% one-day of $1,753, below which the previous week’s low at $1,749 will be put to test.

The next best downside bet for Gold bulls is the previous week’s low at $1,747, with the additional declines likely to test the pivot point one-day S3 at $1,741.

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.

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 Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD clings to recovery gains below 1.0400 ahead of German inflation

EUR/USD clings to recovery gains below 1.0400 ahead of German inflation

EUR/USD is holding onto recovery gains below the 1.0400 mark heading in early Europe. The renewed sell-off in the US Dollar amid the China reopening optimism underpins the Euro. Focus shifts to ECB-speak and Germany's inflation data. 

EUR/USD News

GBP/USD retreats from daily highs, holds above 1.2000

GBP/USD retreats from daily highs, holds above 1.2000

GBP/USD has lost its bullish momentum and retreated toward 1.2000 during the European trading hours on Tuesday. With the upbeat market mood not allowing the US Dollar to gather strength, however, the pair stays in positive territory ahead of US data, Bailey testimony.

GBPUSD News

Gold recovery needs acceptance above $1,760

Gold recovery needs acceptance above $1,760

Gold price picks up bids to reverse the previous day’s losses amid cautious optimism in the financial markets. Easing in China Covid numbers, efforts to defend reality sector join downbeat US Dollar to favor Gold buyers. Hopes of more positives from China signal further upside. 

Gold News

Can XRP price kick-start 30% upswing if China removes zero-Covid restrictions?

Can XRP price kick-start 30% upswing if China removes zero-Covid restrictions?

XRP price shows that it is taking its sweet time to overcome and sustain above a crucial resistance level. It could catalyze a quick run-up.

Read more

Hawkish Fed speak adds to macro headwinds

Hawkish Fed speak adds to macro headwinds

St. Louis Fed President James Bullard said in an online event that the Fed will need to hike rates into next year and that there is still "a ways to go" before a policy is "restrictive."

Read more

Forex MAJORS

Cryptocurrencies

Signatures