- Gold price is rising for the third straight day on Thursday, having recaptured $1,750.
- Dovish Fed minutes and weak US data weigh on the US Dollar alongside US Treasury yields.
- Gold price faces an uphill battle on the upside, with eyes on the key $1,775 resistance.
Gold price is trading at the best levels seen so far this week, as bulls find fresh impetus after having recaptured the $1,750 psychological mark. The main reason behind the renewed upside in the bright metal is the extended US Dollar weakness in tandem with the US Treasury bond yields. Dovish US Federal Reserve minutes and weak United States PMIs and Jobless Claims data triggered a fresh sell-off in the US Dollar, as the US Tresaury yields tumbled across the curve amid increased expectations of smaller Fed rate hikes in the months ahead. The greenback ignored the Chinese coronavirus-led concerns, which kept the risk rally on the global stocks largely capped. Gold price could preserve recent gains amid Thanksgiving Day-driven thin market conditions, as the bias for the US Dollar remains to the downside.
Also read: Stagflation: The worse for US, the better for gold
Gold Price: Key levels to watch
The Technical Confluence Detector shows that the gold price is struggling to take out a strong resistance at around $1,759, where the SMA10 one-day, Fibonacci 23.6% one-week and SMA50 four-hour coincide.
The next critical resistance is envisioned at $1,762, the intersection of the Fibonacci 38.2% one-week and pivot point one-day R1.
Acceptance above the latter will trigger a fresh rally toward the confluence of the Fibonacci 61.8% one-week and pivot point one-month R2 at $1,772.
Further up, the pivot point one-day R2 and one-week R1 at $1,775 will be put to test.
On the flip side, the immediate support is pegged at the previous day’s high of $1,753, below which the previous week’s low at $1,748 will come into play.
The line in the sand for Gold buyers is the $1,742 demand area, which is the Fibonacci 38.2% one-day.
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 trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800, as traders lack directional impetus amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold reaches to all-time highs near $2,230, US PCE eyed
Gold price appreciates to all-time highs near $2,230 per troy ounce, attempting to continue its winning streak for the fifth successive session on Friday. However, trading volumes are light as market participants are likely observing Good Friday.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.