Is US fiscal stimulus in danger? Outgoing President Donald Trump has poured cold water on gold by calling the relief package a “disgrace.” He wants to enlarge stimulus checks from $600 to $2,000 and if that happens,
it could boost the precious metal. Democrats support this raise, but will Republicans reject it? If the bill falls apart XAU/USD room to fall.
How is gold positioned amid growing uncertainty pre-Christmas
The Technical Confluences Indicator is showing that XAU/USD faces fierce resistance at $1,870, which is the convergence of the Simple Moving Average 5-15m, the Fibonacci 38.2% one-day and the SMA 10-15,
If gold breaks higher, the upside target is $1,889, which is where the Fibonacci 61.8% one-month hits the price.
Immediate support is at around $1,864, which is the meeting place of the SMA 5-4h and the Fibonacci 23.6% one-day.
Further down, the downside target for the precious metal is $1,848, which is where the Fibonacci 61.8% one-week hits the price.
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
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