fxs_header_sponsor_anchor

News

Gold Price Forecast: XAU/USD eyes critical upside target at $1,835 – Confluence Detector

Gold is feeling the pull of gravity on the first trading day of 2022, in what seems to be a correction from six-week highs of $1,832. Expectations that the upcoming US first-tier economic events, including the ISM PMIs and Nonfarm payrolls, will confirm a March Fed rate hike are keeping the bulls on the back foot. Additionally, the upbeat market mood is collaborating with the pullback in gold price.

Read: Gold Price Forecast: XAU/USD is down starting out 2022 but not out

Gold Price: Key levels to watch

The Technical Confluences Detector shows that the gold price is trading below strong resistance of $1,827, where the Fibonacci 23.6% one-day coincides with the previous high four-hour and SMA10 one-hour.

The next topside hurdle is seen at the previous day’s high of $1,830, above which the multi-week top of $1,832 will be challenged once again.

The pivot point one-day R1 at $1,835 will be a tough nut to crack for gold bulls.

On the flip side, strong support is pegged at $1,821, the intersection of the Fibonacci 61.8% one-day, Fibonacci 23.6% one-week and previous low four-hour.

The next relevant cap is seen at 1,818, which is the pivot point one-day S1. Friday’s low of $1,815 will be next on sellers’ radars.

The convergence of the SMA100 one-hour and Fibonacci 23.6% one-month at $1,812 will be the line in the sand for gold buyers.

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.