Gold has been rising, topping the $1,860 ahead of Joe Biden’s inauguration as the 46th President of the United States. XAU/USD had previously received a boost from Janet Yellen, who made the case for providing more stimulus to the US economy. Are XAU/USD pricing another shot in the arm, this time from the Commander-in-Chief.
How is the precious metal positioned on the technical graphs?
The Technical Confluences Indicator is showing that gold has robust support at around $1,846, which is a dense cluster of lines including the 200-day Simple Moving Average, the SMA 100-15m, and the Fibonacci 61.8% one-week.
It is followed by another cushion at $1,835, which is the convergence of the Pivot Point one-day Support 1, the Fibonacci 38.2% one-week, and the Bolinger Band 1h-Lower.
Looking up, resistance is weaker. The first hurdle awaits at $1,856, which is the confluence of the BB 4h-Upper and the Fibonacci 38.2% one-month.
The upside target for the yellow metal awaits at $1,876, which is where the Fibonacci 23.6% one-month hits the price.
XAU/USD resistance and support levels
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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