Gold Price Forecast: XAU/USD’s upside remains compelling towards $1,921 – Confluence Detector
- Gold price remains underpinned by geopolitics, as Russia-Ukraine risks escalate.
- Thursday’s G7 meeting offers some optimism but risk sentiment remains sour.
- Gold Price Forecast: Acceptance above $1,917 to unleash further upside, Ukraine in focus.
Gold price continues to draw the safe-haven bids on escalating geopolitical tensions after Russian President Vladimir Putin’s decision to officially recognize two self-proclaimed separatist republics in eastern Ukraine. The US and its allies condemned the Russian move at the United Nations (UN) Security Council’s emergency meeting, as the White House has prepared a set of sanctions to be imposed on Russia. Some market participants still see a ray of hope for de-escalation, as they look forward to Thursday’s G7 meeting on the Ukraine crisis.
Read: Markets brace for heavy falls as Russia-Ukraine crisis escalates
Gold Price: Key levels to watch
The Technical Confluences Detector shows that gold price is challenging key resistance at $1,909, which is the Bollinger Band one-day Upper.
A sustained move above the latter will bring the pivot point one-day R1 at $1,913 into play, above which the eight-month highs of $1,917 will be challenged.
Acceptance above the latter will trigger a fresh upswing towards $1,919, the pivot point one-week R1. Further up, the pivot point one-day R2 at $,1921 will test the bearish commitments.
Alternatively, if the corrective pullback resumes, then the previous week’s high of $1,903 is likely to be threatened.
The next relevant support is envisioned at the confluence of the Fibonacci 161.8% one-month and the SMA10 four-hour.
The Fibonacci 61.8% one-day at $1,896 will then come to the rescue of gold optimists.
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.
