Gold Price Analysis: Corrective downside likely while below $1937 – Confluence Detector


Gold (XAU/USD) trades with sizeable gains so far this Monday, having recorded fresh life-time highs at $1944.76 earlier in the Asian session.

The unprecedented level of monetary and fiscal stimulus adopted by the global central banks and governments have weighed heavily on the inflation-adjusted US yields, benefiting the non-yielding gold at the expense of the US dollar.

Meanwhile, the US-China escalation has been the latest catalyst behind the latest rally in the bright metal to fresh records highs. The souring ties between the world’s two largest economies have dented the investors’ sentiment, as they seek safety in the traditional haven, gold.

Attention now turns towards the US Durable Goods Order data and performance on the global stocks for the next move in the prices. Let’s see how it is positioned technically, as indicated by the Technical Confluences Indicator.

Key resistances and supports

The tool shows that a cluster of minor support levels around $1931 limits gold’s quick retracement from the record highs. That zone is the confluence of the SMA5 one-hour, previous low one-hour and Bollinger Band 15-minutes Middle.  

A failure to resist above the aforesaid support area could expose the next support at $1924, the Bollinger Band four-hour Upper.

The bears eye the downside target at $1921.14, the previous record high. A break below the latter could accelerate the corrective downside.  

To the upside, the immediate hurdle is around $1937, this is a powerful one, as the pivot point one-month R3, pivot point one-day R3 and pivot point one-week R1 intersect there.

Acceptance above that level could put the latest all-time highs at $1944.76 back to test. The next barrier is aligned at the psychological $1950 level.

Here is how it looks on the tool

fxsoriginal

About the Confluence Detector

The Confluence Detector is an excellent handy tool to identify important resistance and support levels. Therefore, it helps to determine the path of least resistance for the asset under analysis.                                                   

Learn more about Technical Confluence

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD declines toward 1.0450 on USD recovery

EUR/USD declines toward 1.0450 on USD recovery

EUR/USD struggles to gain traction and declines toward 1.0450 on Tuesday despite the upbeat ZEW Survey - Economic Sentiment data for Germany and the Eurozone. Rising US Treasury bond yields support the US Dollar and weigh on the pair.  

EUR/USD News
GBP/USD struggles to hold above1.2600

GBP/USD struggles to hold above1.2600

GBP/USD stays under modest bearish pressure and trades below 1.2600 on Tuesday. Earlier in the day, the pair edged higher with the initial reaction to the UK labor market data, which showed that the Unemployment Rate held steady at 4.4% in the three months to December.

GBP/USD News
Gold approaches record highs

Gold approaches record highs

Gold prices advance to two-day highs around $2,930 per ounce troy amid the resumption of tariff concerns and despite the tepid rebound in the Geenback and an acceptable move higher in US yields across the curve.

Gold News
Why Solana, XRP, Dogecoin and BNB are crashing?

Why Solana, XRP, Dogecoin and BNB are crashing?

Solana (SOL), XRP, Dogecoin (DOGE) and Binance Coin (BNB) decline on Tuesday. Top altcoins ranked by market capitalization are in a downward trend, even though Bitcoin (BTC) continues to consolidate around the $95,000 level. 

Read more
Rates down under

Rates down under

Today all Australian eyes were on the Reserve Bank of Australia, and rates were cut as expected. RBA Michele Bullock said higher interest rates had been working as expected, slowing economic activity and curbing inflation, but warned that Tuesday’s first rate cut since 2020 was not the start of a series of reductions.

Read more
The Best Brokers of the Year

The Best Brokers of the Year

SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025