Gold (XAU/USD) wavers below $1850, consolidating the Fed-led downside, as traders await the US Q4 advance GDP release for a fresh direction.
Gold lost ground once again on Wednesday after the Fed left its key rates unchanged while maintaining the current bond-buying at $120 billion per month. Benign Fed and mounting tensions over the covid surge knocked-of the stocks and boosted the safe-haven demand for the US dollar.
Let’s take a look at the key technical levels for trading gold in the day ahead.
Gold Price Chart: Key resistances and supports
The Technical Confluences Indicator shows that gold is challenging immediate support at $1836, which is the confluence of the previous low one-hour and Fibonacci 23.6% one-day.
The bears need acceptance below the critical $1831 cushion, where the previous low one-day, Fibonacci 61.8% one-week and pivot point one-day S1.
The next downside target is seen at the Fibonacci 61.8% one-month at $1827. A sharp sell-off below the latter cannot be ruled out, exposing powerful support at $1817, the pivot point one-month S1.
Alternatively, the bulls face a dense cluster of resistance levels around $1842, above which the Fibonacci 61.8% one-day at $1845 guards the upside.
Further up, it is likely to be an uphill task for the XAU bulls until the Fibonacci 38.2% one-month at $1857 is scaled on a sustained basis.
Here is how it looks on the tool
About 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.
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