Gold Price Forecast: XAU/USD’s upside remains compelling towards $1,921 – Confluence Detector
|- Gold price remains underpinned by geopolitics, as Russia-Ukraine risks escalate.
- Thursday’s G7 meeting offers some optimism but risk sentiment remains sour.
- Gold Price Forecast: Acceptance above $1,917 to unleash further upside, Ukraine in focus.
Gold price continues to draw the safe-haven bids on escalating geopolitical tensions after Russian President Vladimir Putin’s decision to officially recognize two self-proclaimed separatist republics in eastern Ukraine. The US and its allies condemned the Russian move at the United Nations (UN) Security Council’s emergency meeting, as the White House has prepared a set of sanctions to be imposed on Russia. Some market participants still see a ray of hope for de-escalation, as they look forward to Thursday’s G7 meeting on the Ukraine crisis.
Read: Markets brace for heavy falls as Russia-Ukraine crisis escalates
Gold Price: Key levels to watch
The Technical Confluences Detector shows that gold price is challenging key resistance at $1,909, which is the Bollinger Band one-day Upper.
A sustained move above the latter will bring the pivot point one-day R1 at $1,913 into play, above which the eight-month highs of $1,917 will be challenged.
Acceptance above the latter will trigger a fresh upswing towards $1,919, the pivot point one-week R1. Further up, the pivot point one-day R2 at $,1921 will test the bearish commitments.
Alternatively, if the corrective pullback resumes, then the previous week’s high of $1,903 is likely to be threatened.
The next relevant support is envisioned at the confluence of the Fibonacci 161.8% one-month and the SMA10 four-hour.
The Fibonacci 61.8% one-day at $1,896 will then come to the rescue of gold optimists.
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.
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