- Gold price picks up fresh bids but remains confined within a familiar range.
- Easing Omicron fears, Fed’s hawkish bets weigh on gold while USD recedes.
- Gold sellers eye $1,750 as Fed stays on tightening path.
Gold price is picking up from where it left on Monday, having witnessed a bearish start to a relatively quiet week. Easing concerns over the new Omicron covid variant combined with the faster-tapering expectations from the Fed next week are putting a lid on gold’s upside. Further, a strong technical hurdle around $1,792 and an upbeat market mood could also keep gold bulls at bay. All eyes remain on Friday’s US inflation data for the next direction in gold price.
Read: Gold Price Forecast: Depressed amid a better market mood
Gold Price: Key levels to watch
The Technical Confluences Detector shows that the gold price is trading just above the critical resistance now support at $1,780, where the SMA5 one-day, Fibonacci 38.2% one-week and one-day converge.
If gold bulls sustain above the latter, then a test of the $1,785 hurdle will be inevitable. That level is the confluence of the SMA50 four-hour and SMA200 one-hour.
Immediate upside will then be capped by the Fibonacci 23.6% one-month at $1,787.
Doors will further open up towards $1,792, the powerful supply zone comprising of the SMAs 50, 100 and 200 one-day. The Fibonacci 61.8% one-week also aligns at that point.
Buyers will look for fresh entries above the latter, with eyes on the $1800 level – the pivot point one-day R3.
On the flip side, a failure to resist above the aforesaid $1,780 barrier, will recall sellers to test the previous day’s low of $1,776. The SMA5 one-day appears at that level.
The next stop for gold bears is seen at $1,773, the Fibonacci 23.6% one-week, below which the pivot point one-day S2 at $1,769 could get tested.
Further south, a test of the November lows of $1,759 will be in the offing.
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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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