- Gold Price licks its wounds after hitting four-month lows at $1,810.
- Wall Street enters bear market, as a 75 bps June Fed rate hike looks likely.
- US dollar, yields to keep the upper hand, as XAU bulls remain under threat.
Gold Price is seeing a dead cat bounce above $1,800, having hit the lowest level in four months earlier this Tuesday. Increasing bets of a 75 bps Fed rate hike this week keep the sentiment around the US dollar, as well as, the Treasury yields buoyed. The safe-haven buck also draws support from the blood bath on global stocks amid growing fears of higher rates leading to a US recession, which tripped Wall Street into a bear market. The non-yielding XAUUSD is unlikely to attract solid bids heading into Wednesday’s Fed showdown.
Also read: Fed Preview: Powell to plunge markets or raise yields, a win-win for the dollar, five scenarios
Gold Price: Key levels to watch
The Technical Confluence Detector shows that Gold Price is struggling to extend its recovery near the $1,826 hurdle, where the previous week’s low aligns.
Acceptance above the latter could initiate a fresh upswing towards the powerful resistance around $1,833, the confluence of the Fibonacci 38.2% one-month and Fibonacci 23.6% one-day.
The pivot point one-week S1 at $1,839 will challenge the bulls on the road to recovery. Further up, the convergence of the Fibonacci 38.2% one-day and SMA200 one-day at $1,841 will come into play.
The last line of defense for XAU sellers is pegged at $1,846, which is the Fibonacci 61.8% one-week.
On the flip side, the immediate support awaits at the $1,820 round figure, below which bears will look out for the strong support around $1,816, where the Fibonacci 23.6% one-month collides into the Bollinger Band one-day Lower.
The previous low four-hour at $1,810 will come to the rescue of gold buyers on selling resurgence.
The next and the final stop for bears is seen at $1,807, the pivot point one-week S2.
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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