Gold has been extending its gains amid hopes for a larger fiscal stimulus deal from Congress. The initial boost came from a bipartisan offer of $908 billion early in the week. The devastating coronavirus figures – after a hiatus related to the Thanksgiving holiday – have also raised the prospects of a relief accord.
The most recent boost to stimulus hopes came from the disappointing US jobs report. Nonfarm Payrolls rose by 245,000, around half the early expectations. Will lawmakers boost the economy and supply more funds? The precious metal may benefit from such a move.
How is XAU/USD positioned on the technical graphs?
The Technical Confluences Indicator is showing that gold has robust support at $1,841, which is a dense cluster of lines, including the Simple Moving Average 5-1h, the SMA 10-1h, the Bollinger Band 1h-Middle, the BB 15min-Middle, the Fibonacci 38.2% one-month and more.
It is backed up by another cushion at $1,837, which is the convergence of the BB 15min-Lower, the Fibonacci 61.8% one-week, and the BB 1h-Lower.
Some resistance awaits at $1,852, which is the confluence of the PP one-week R1, the BB one-day Middle, and others.
The upside target is $1,870, which is where the PP one-day R3 hits the price.
XAU/USD resistances and supports
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.
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