- Gold Price consolidates the Fed-led rebound amid an upbeat mood.
- Fed’s resolve to fight inflation calm nerves, 10-year yields tumble.
- Will XAUUSD find acceptance above critical resistance at $1,842?
Fed Chair Jerome Powell presented a 75 bps rate hike at its June monetary policy meeting, offering the much-needed comfort to the market. Longer-dated yields tumbled on the Fed’s resolve to fight inflation, knocking off the US dollar while helping Gold Price stage a solid comeback. Although sellers remained positioned at higher levels, as we head towards another central bank (BOE) day. On Wednesday, the ECB announced that it will apply flexibility in PEPP reinvestment at its unscheduled meeting.
Also read: The Fed does not want to induce a recession but is there any choice?
Gold Price: Key levels to watch
The Technical Confluence Detector shows that Gold Price is striving hard to recapture $1,836, which is the meeting point of the Fibonacci 23.6% one-day and Fibonacci 38.2% one-month.
Acceptance above the latter will trigger a fresh upswing towards the pivot point one-week S1 at $1,839.
The next strong resistance is aligned near $1,842, the confluence of the SMA200 one-day, the previous day’s high and the Fibonacci 38.2% one-day.
Further up, the convergence of the Fibonacci 61.8% one-week and the SMA10 one-day at $1,845 will challenge the bearish commitments, as bulls keep their sight on the pivot point one-day R1 at $1,849.
Alternatively, the Fibonacci 38.2% one-day at $1,828 offers immediate support, below which the previous week’s low of $1,825 will be in the picture.
The Fibonacci 61.8% one-day at $1,820 could rescue bulls if the downside pressure intensifies.
The line in the sand for gold buyers is pegged at $1,816, the Fibonacci 23.6% one-month.
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 holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.