Gold Price Forecast: XAU/USD key levels to watch, Fed in focus – Confluence Detector
- Gold price remains stuck between the Russia-Ukraine crisis and the Fed.
- Traders turn cautious as Fed is likely to hint at a March rate hike.
- Gold Price Forecast: XAU/USD risks correction on death cross, potential Fed’s hawkishness
Gold price has paused its two-day uptrend, as bulls contemplate the next move, in anticipation of the critical Fed interest rate decision. Fed is seen hinting at a March rate lift-off while traders will closely eye any signals on the timing of the balance sheet reduction. Expectations of a hawkish Fed outcome are limiting the upside in gold price, although bulls draw support from the ongoing Russia-Ukraine geopolitical turmoil. Let’s take a look at gold’s key technical levels in the run-up to the Fed showdown.
Read: Fed January Preview: Three possible scenarios for gold
Gold Price: Key levels to watch
The Technical Confluences Detector shows that the gold price is consolidating below a bunch of healthy resistance levels stacked up around $1,849.
At that supply zone, the previous week’s high coincides with Fibonacci 38.2% one-day.
The immediate upside meets strong offers around $1,852, the confluence of the pivot point one-week R1, Fibonacci 23.6% one-day and Bollinger Band one-day Upper.
The intersection of the pivot point one-day R1 and pivot point one-month R1 at $1,856 is the level to beat for gold bulls.
On the other hand, if the correction picks up steam, then the immediate support awaits at the Fibonacci 61.8% one-day at $1,842.
The next significant cushion is placed at $1,840, the SMA5 one-day, below which the Fibonacci 23.6% one-week at $1,837 will get tested.
A sharp sell-off will be triggered below the last, calling for a test of the previous month’s high of $1,831.
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.
