- Gold Price rebounds from three-month lows, as risk sentiment recovers.
- End of the week flows could add legs to the relief rally in XAU/USD.
- Recapturing the $1,836 level is critical for gold bulls after Thursday’s turmoil.
Gold Price is making a recovery attempt after the latest leg down to a new three-month low near $1,800. The market’s perception of risk sentiment and its impact on the US dollar valuations continue to play a key role, as global growth and inflation fears keep lurking. Hotter US inflation and expectations of aggressive Fed’s tightening renewed global economic slowdown concerns, as investors sought refuge in the ultimate safe-haven US dollar. Looking ahead, the end of the week flows and the dollar dynamics will continue to play a pivotal role in Gold Price action, as the turbulent week draws to an end.
Also read: Silver tests a make-or-break point
Gold Price: Key levels to watch
The Technical Confluences Detector shows that the Gold Price is eyeing a test of the Fibonacci 23.6% one-day at $1,830 on its road to recovery.
Recapturing that level will put minor resistance at $1,834 in XAU buyers’ sights.
Gold bulls need to find a strong foothold above the confluence of the Fibonacci 38.2% one-day and SMA200 one-day at $1,836 to affirm a meaningful recovery.
The next stop for bullish traders is seen at the Fibonacci 61.8% one-day at $1,843, above which the $1,847 hurdle will be challenged. At that point, the pivot point one-month S1 and pivot point one-day R1 meet.
On the downside, strong support is seen around $1,823, which is the convergence of the previous day’s low and the pivot point one-week S2.
A breach of the last will trigger a fresh downswing towards the intraday low of $1,810, below which the $1,808 cap will be the last line of defense for gold bulls. The latter is the pivot point one-day S1.
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.
Recommended content
Editors’ Picks
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.