Gold has been on the rise after US President Donald Trump sounded upbeat on fiscal stimulus. The Commander-In-Chief said that House Speaker Nancy Pelosi wants a fiscal stimulus deal. Whether Trump is genuinely reflecting on Pelosi’s intentions or rather expressing his own desires, the comments are positive for the precious metal.
XUA/USD has been on the rise, advancing toward $1,900 as more government money indicates funds flowing to gold.
How is the precious metal positioned on the technical charts?
The Technical Confluences Indicator is showing that XAU/USD has strong support at $1,888, which is the convergence of the Simple Moving Average 10-one-day, the SMA 1001-5m, and the Fibonacci 38.2% one-day.
Another cushion awaits at $1,883, which is where the Fibonacci 23.6% one-month and the Bollinger And 1h-Lower meet.
Resistance awaits at $1,903, which is the confluence of the SMA 200-4h and the Fibonacci 23.6% one-week.
Further above, the upside target is $1,909, which is where the Pivot Point one-day Resistance 2 and the BB one-day Middle 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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