Gold Price Forecast: XAU/USD rebound approaches $2,010 hurdle – Confluence Detector

Gold price prints the first daily gains in three amid cautious optimism.
US Dollar traces Treasury bond yields to retreat ahead of top-tier data/events.
Mixed headlines surrounding China require XAU/USD bulls to remain cautious.
Gold traders need clear signals from US inflation, Fed Minutes for further directions.

Anil Panchal FXStreet

Gold price (XAU/USD) regains $2,000 as a softer US Dollar joins a retreat in the US Treasury bond yields to lure XAU/USD bears amid full markets. A reassessment of the Federal Reserve’s (Fed) rate hike bets join optimism surrounding the India-China growth, per the International Monetary Fund’s (IMF) Managing Director Kristalina Georgieva, allow the Gold price to remain firmer. However, downbeat China inflation numbers and the US-China tension prod the XAU/USD bulls.

Further, cautious mood ahead of Wednesday’s key US inflation data and the Fed Minutes join consolidation of recent moves amid full markets to allow the Gold price to remain mildly bid.

That said, Gold price remains firmer amid a broad US Dollar pullback and fresh concerns over the Fed’s next moves. However, the XAU/USD bulls need validation from the US CPI and the FOMC Minutes moving forward.

Also read: Gold Price Forecast: XAU/USD set to take out key resistance at $2,007, focus shifts to US inflation

Gold Price: Key levels to watch

Our Technical Confluence Indicator shows that the Gold price grinds higher towards the $2,010 resistance confluence comprising the previous monthly high.

Also acting as an upside filter is the $2,014 mark which encompasses Fibonacci 23.6% on one-week.

Following that, Pivot Point one-day R2, Fibonacci 161.8% on one-day and Pivot Point one-day R3 can challenge the Gold buyers around $2,016, $2,020 and $2025 in that order.

Meanwhile, pullback moves have multiple hurdles to the south before welcoming the XAU/USD bears.

Among them, SMA10 on 4H and 10-HMA restrict the immediate downside of the Gold price near $1,998 and $1,995 respectively.

Should the XAU/USD price remains bearish past $1,995, Fibonacci 61.8% on one week, around $1,982, can act as the last defense of the 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

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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