Gold has kicked off the first full week of December with another jump to the upside. The main driver comes from Washington, where lawmakers are reportedly warming up to a new fiscal stimulus deal worth around $1 trillion. While gold bulls would probably like to see a package $2 trillion or more, anything achieved in the lame-duck session would be a boon. The latest disappointing jobs report has probably pushed Congress into more intensive work on a bill.
How is XAU/USD positioned on the technical graphs?
The Technical Confluences Indicator is showing that fierce resistance awaits at $1,869, which is the convergence of the Pivot Point one-week Resistance 1 and the Simple Moving Average 200-4h.
The upside target for the precious metal is $1,879, which is where the all-important 50-day Simple Moving Average hits the price.
Some support awaits at $1,857, which is the meeting point of the previous 1h-high and the Pivot Point one-day Resistance 2.
The most critical cushion is at $1,842, which is the confluence of the Fibonacci 38.2% one-month and the Fibonacci 61.8% one-day.
XAU/USD resistances and supports
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.
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