Gold Price Forecast: XAU/USD looks to $1,950 again ahead of Russia-Ukraine peace talks – Confluence Detector
|- Gold price attempts a fresh run towards $1,950 after Wednesday’s downfall.
- Stagflation fears outweigh firmer Treasury yields to lift gold price northwards.
- Will gold retest $1,950 on Russia-Ukraine peace talks 2.0, Powell?
Gold price extends its range play around the $1,930 level for the third consecutive day, reversing a part of Wednesday’s sell-off. Soaring oil prices, a fallout of the Russia-Ukraine crisis, have refueled stagflation concerns worldwide, reviving gold’s demand as a safe haven. Meanwhile, the US dollar continues to hold fort amid ongoing strength in the Treasury yields due to the hawkish Fed Chair Jerome Powell’s testimony. The next direction in gold price hinges on the outcome of round two of the Russia-Ukraine ‘peace talks’ while the US economic data will continue to play second fiddle.
Read: Gold trades at major yearly resistance
Gold Price: Key levels to watch
The Technical Confluences Detector shows that gold price is battling minor resistance around $1,933, where the SMA10 four-hour aligns.
Recapturing the latter will cheer buyers, propelling the price towards $1,937, which is the confluence of the Fibonacci 61.8% one-week and one-day.
Gold traders will create fresh buying opportunities above that level, triggering a fresh rally towards the pivot point one-day R1 at $1,945.
The $1,950 barrier remains the level to beat for gold bulls. At that point, the previous day’s high and pivot point one-week R1 coincide.
Alternatively, a decisive break below the $1,930-$1,929 support area is needed to resume the previous downside momentum.
That zone is the convergence of the Fibonacci 23.6% one-month, Fibonacci 38.2% one-day and SMA5 four-hour.
The next relevant support awaits at $1,922, the intersection of the intraday low, Fibonacci 23.6% one-day and Bollinger Band four-hour Middle.
Gold bears will need to crack the $1,915 cap to take on the additional downside. The Fibonacci 38.2% one-week, the previous day’s low and SMA5 one-day meet at that point.
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.