- Gold Price range play intact at around $1,850 amid a cautious mood.
- The US dollar clings to gains, as inflation and Fed worries play out.
- XAU bulls could try their luck once again ahead of critical US data.
Gold Price is treading water while keeping its range around $1,850, having hit ten-day lows at $1,829 a day before. The US dollar holds onto its recent advance amid a cautious market mood, making it difficult for XAU bulls to flex their muscles. Meanwhile, the downside in the bright metal finds support from a minor pullback in the Treasury yields. However, it remains to be seen if gold price can breakout from the ongoing range trade, as inflation, geopolitics, the Fed sentiment and critical US economic data remain in play.
Also read: Where gold’s downtrend is heading
Gold Price: Key levels to watch
The Technical Confluence Detector shows that the Gold Price is challenging fierce resistance at $1,846, which is the convergence of the Fibonacci 23.6% one-day, the previous low four-hour and the Bollinger Band one-day Middle.
If bulls reclaim the abovementioned barrier, then they could march towards a dense cluster of healthy resistance levels stacked up around $1,851. That area is the meeting point of the Fibonacci 61.8% one-week, SMA50 four-hour, SMA10 one-day and the previous day’s high.
The pivot point one-day R1 at $1,855 could then test the bearish commitments on the road to recovery, above which the doors will open up for the Fibonacci 38.2% one-week.
The last line of defense for gold sellers aligns at $1,863, where the Fibonacci 61.8% one-month and the Fibonacci 23.6% one-week merge.
On the downside, the immediate cap appears at $1,840, which comprises the SMA100 four-hour, SMA200 one-day and the Fibonacci 38.2% one-day.
The next bearish target is seen at the Fibonacci 61.8% one-day at $1,837, below which the strong support around $1,834 will get tested.
At that level, the Fibonacci 38.2% one-month coincides with the pivot point one-day S1. The previous day’s low of $1,829 will be next on the sellers’ radars.
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
AUD/USD drops to 0.6650 on risk-off mood
AUD/USD has come under fresh selling pressure, dropping near 0.6650 amid broad risk-aversion-led US Dollar demand in Asian trades on Tuesday. The pair fails to find any inspiration from the RBA's hawkish Minutes. More Fedspeak awaited.
USD/JPY extends gains to near 156.50, tracking positive US yields
USD/JPY is extending previous gains to test 156.50, despite the comments from Japan's Finance Minister Shunichi Suzuki. The pair stays supported amid an uptick in the US Treasury bond yields and the US Dollar after Fed officials adopted a cautious stance on the inflation and policy outlook.
Gold price turns red amid renewed US Dollar demand
Gold price loses its recovery momentum on Tuesday after reaching a record high earlier. The lack of fresh catalysts in a quiet session in terms of top-tier economic data might limit the precious metal’s upside.
New York Attorney General reaches $2 billion settlement with Genesis after claims of fraud
After a lawsuit filed by the New York Attorney General against crypto lender Genesis in late 2023, the company reached a settlement of $2 billion with the AG on Monday.
The market-moving data this week comes from everywhere other than the US
The market-moving data this week comes from everywhere other than the US. We get inflation from the UK, Canada, and Japan, possibly shifting central bank outlooks. The Fed releases FOMC minutes on Wednesday. And we get a slew of PMI’s on Thursday.