Gold has been shining once again after the Federal Reserve signaled it is unlikely to raise interest rates through 2024. Moreover, Fed Chair Jerome Powell stressed that the economy needs more support and that the bank will only begin moving toward a lift-off after it sees progress.
The dovish message means more flows of funds to markets, and also lower Treasury yields. The precious metal has no yield, and the drop in returns on Uncle Sam’s debt boosts the value of XAU/USD.
What are the next levels to watch?
The Technical Confluences Detector is showing that gold faces some resistance at $1,755, which is the convergence of the Fibonacci 23.6% one-month and the Pivot Point one-day Resistance 3.
Further above, the upside target is $1,775, which is the meeting point of the Fibonacci 38.2% one-month and the PP one-week R2.
Some support is at $1,740, which is the confluence of the Bollinger Band 1h-Upper, the PP one-day R1, and the previous week’s high.
It is followed by a considerable cushion at $1,733, which is a dense cluster consisting of the BB 15min-Middle, the Simple Moving Average 10-4h, the SMA 100-4h, the Fibonacci 38.2% one-day, and additional indicators.
The last line to watch is $1,718, which is a juncture including the previous month’s low, the SMA 200-1h, the SMA 50-4h, and the PP one-day S2.
XAU/USD resistance and support levels
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.
Learn more about Technical Confluence
Share
