After four straight down sessions, Gold (XAU/USD) looks to extend its recovery above $1850, benefiting from growing covid concerns globally and expectations of additional US fiscal stimulus. President-elect Joe Biden is expected to propose a multitrillion-dollar stimulus package on Thursday, reviving the reflation trades, which could set an inflation uptrend. Gold, therefore, draws support as an inflation-hedge. Meanwhile, markets assess the impact of a stronger US dollar and the rally in Treasury yields amid US political drama and ahead of Fedspeak. Gold Price Chart: Key resistances and supports The Technical Confluences Indicator shows that gold readies to take out a powerful resistance at $1858, which is the intersection of the previous day high and Fibonacci 38.2% one-day. Up next, a dense cluster of major resistance levels is put up around $1861, where the Fibonacci 23.6% one-week, SMA200 four-hour and SMA50 one-hour coincide. The buyers will then target the SMA50 one-day at $1869. Meanwhile, a lack of healthy support levels makes gold look vulnerable, with an immediate cushion seen around $1847, which is the convergence SMA10 and 5 one-hour and SMA5 four-hour. The next critical support awaits at $1840, the meeting point of the SMA200 one-day and Fibonacci 61.8% one-day. Further south, the previous week low at $1828 could guard the downside should the $1833 (Fibonacci 38.2% one-day) support give way. 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. Learn more about Technical Confluence FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Asian stocks dribble amid cautious optimism FX Street 1 year After four straight down sessions, Gold (XAU/USD) looks to extend its recovery above $1850, benefiting from growing covid concerns globally and expectations of additional US fiscal stimulus. President-elect Joe Biden is expected to propose a multitrillion-dollar stimulus package on Thursday, reviving the reflation trades, which could set an inflation uptrend. Gold, therefore, draws support as an inflation-hedge. Meanwhile, markets assess the impact of a stronger US dollar and the rally in Treasury yields amid US political drama and ahead of Fedspeak. Gold Price Chart: Key resistances and supports The Technical Confluences Indicator shows that gold readies to take out a powerful resistance… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.