Gold (XAU/USD) is on a steady rise on Friday, recovering ground after Fed Chair Powell’s adoption of the average inflation targeting strategy. The yellow metal benefits from broad-based US dollar weakness, as global markets cheer Fed’s lower rates for a longer period and down greenback’s haven demand.
The bounce, however, could remain elusive amid a rally in the US Treasury yields, as the inflation expectations hit a seven-year high. How is gold positioned technically?
Gold: Key resistances and supports
The tool shows that gold has regained the critical resistance now support at $1937, the convergence of the Fibonacci 23.6% one-week and SMA5 one-day.
The next relevance barrier to the upside is seen at $1949, the intersection of the SMA200 on one-hour and SMA10 one-day.
Further north, the robust resistance at $1952 will come into play once again. That level is the confluence of the Fibonacci 61.8% one-day and Fibonacci 38.2% one-week.
Also, the buyers aim for $1957, which is the next hurdle.
Alternatively, below the aforementioned $1937 support, the $1932 cushion (Fibonacci 23.6% one-month) will slow down the declines.
The next downside target awaits at $1924, the Fibonacci 23.6% one-day.
Here is how it looks on the tool
About the Confluence Detector
The TCI (Technical Confluences Indicator) 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.
Learn more about Technical Confluence
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