Gold Price Analysis: XAU/USD eyes $1,972 as Georgia's elections are in focus – Confluence Detector
|Will Democrats enjoy a dual victory in Georgia? That is the question for gold traders. If President-elect Joe Biden's party gains effective control of the Senate, he could push for an ambitious stimulus deal that would benefit the precious metal.
The latest opinion polls show a minor lead for Democrats, but anything can happen. How is XAU/USD positioned on the charts?
The Technical Confluences Indicator is showing that gold is still battling the $1,947 level, which is the convergence of the Pivot Point one-month Resistance 1 and the Bollinger Band 1h-Upper.
Looking up, some resistance awaits at $1,959, which is the meeting point of the PP one-day R1 and the BB 4h-Upper.
Further above, the upside target is $1,972, which is where the Pivot Point one-day Resistance 2 hits the price.
Strong support awaits at $1,941, which is a dense cluster of lines including the Simple Moving Average 50-15m, the SMA 10-1h, the BB 1h-Middle, the PP one-week R3 and more.
Further down, another line worth watching is $1,930, which is the confluence of the Fibonacci 38.2% one-day and the SMA 10-4h.
XAU/USD resistance and support levels
Confluence Detector
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC 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. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
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.