Gold Price Analysis: Hits fresh record highs, key levels to watch ahead of NFP – Confluence Detector

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Gold extends its choppy trend after refreshing all-time-highs at $2075 in early Asia. The metal lacks a clear directional bias heading into the critical US NFP. ‘Buy the dips’ will remain in vogue alongside the US dollar dynamics amid a resurgence of the US-China tensions.

The dollar comeback amid risk-aversion, flagged after US President Trump banned the Chinese apps, stalled the bullish momentum in gold. The US payrolls will remain the key decider for gold’s next direction. Although a correction cannot be ruled out.  

How is it positioned technically? Key levels to watch

The tool shows that the bright metal sees immediate cushion at $2054, which is the pivot point one-month R1 and powerful support.

A break below the latter will open floors towards the Fibonacci 61.8% one-day and intraday low at $2049.

The next downside target is aligned at $2042, the pivot point one-day S1. Bears may face difficulty clearing the next support at $2038, which is the pivot point one-week R2.

Alternatively, a bunch of resistance levels is stacked up around $2061/63, the confluence of the Fibonacci 23.6% one-day, SMA5 four-hour and Bollinger Band one-hour Middle.

Further north, the previous day high at $2069 will offer some resistance before the spot retest the record highs, with a target to conquer the $2100 mark.

Here is how it looks on the tool

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About the Confluence Detector

With the TCI (Technical Confluences Indicator) tool, you can easily locate areas where the price can find a support zone or resistance zone and make trading decisions. If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points each time.

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