Gold Price Forecast: XAU/USD key levels to watch as US yield curve flattens – Confluence Detector


Spiking short-term US Treasury yields amid increasing bets of Fed’s monetary policy normalization, in the face of strengthening economic recovery, leading to the flattening of the yield curve. As the yield curve flattens, it also re-ignites stagflation fears amid the persistence of rising price pressures globally, which is possibly keeping the buoyant tone intact around the traditional safe-haven gold price. However, gold bulls remain cautious and refrain from placing any fresh bets ahead of the key event risks for this week.

Read: Gold Price Forecast: Risks appear skewed to the upside for XAU/USD heading into ECB, US GDP

Gold Price: Key levels to watch

The Technical Confluences Detector shows that gold is retreating after having faced rejection at $1804, the previous high four-hour.

At the press time, gold price is battling $1800, the confluence of the previous day’s high and the SMA5 four-hour.

If the selling pressure intensifies, the next relevant support is seen around $1793, where the SMA200, Fibonacci 38.2% one-day and one-week merge.

Further south, the Fibonacci 61.8% one-month at $1791 will play out, below which the convergence of the SMA100 one-day and Fibonacci 61.8% one-day at $1789 will be challenged.  

On the upside, gold buyers will need acceptance above the aforesaid $1804 resistance level. The buyers will then target the pivot point one-day R2 at $1809.

Fresh buying opportunities above the latter will seek a test of the previous week’s high of $1814.

Further up, the bulls will then challenge a dense cluster of resistance levels around $1820, which is the intersection of the pivot point one-day R3, pivot point one-month R1 and pivot point one-week R1.

Here is how it looks on the tool

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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.

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