The world is in shock after President Donald Trump tweeted that he tested positive for coronavirus. Stocks markets fell, and gold finally broke free of the correlation with equities and advanced above $1,900.
The bombshell development continues grabbing the headlines and casts questions about fiscal stimulus, the elections, and other topics.
As investors continue watching the latest developments, how is the precious metal positioned?
The Technical Confluences Indicator is showing that XAU/USD has substantial support at $1,904, which is the convergence of the Simple Moving Average 5-15min, the Fibonacci 38.2% one-month, and the SMA 5-4h.
Looking up, gold faces its first noteworthy cluster of resistance at $1,910, which is the meeting point of the Bollinger Band 4h-Upper, the previous daily high, the BB 15min-Upper, and other lines.
The upside target is $1,928, which is the confluence of the Pivot Point one-day Resistance 2 and the PP one-week R1.
In case XAU/USD falls below $1,904, the next cushion is at $1,890, which is where the PP one-day S1 and the Fibonacci 38.2% one-week converge.
Key XAU/USD resistances and supports
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.
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