Gold Price Analysis: XAU/USD’s fate hinges on Wall Street sentiment, levels to watch – Confluence Detector

Gold (XAU/USD) is back to square one this Friday after Thursday’s rollercoaster ride, thanks to Reddit’s day-trader-led silver market craze. Gold licks its wounds near $1850, as traders await fresh US stimulus updates amid risk-off market mood and broad-based US dollar strength.

The yellow metal is on track to book a monthly and weekly decline while holding onto the $1800 support. The sentiment on Wall Street and US economic data will emerge as the key catalysts. How is gold positioned on the technical graphs?

Gold Price Chart: Key resistances and supports

The Technical Confluences Indicator shows that gold is flirting with $1845, which is the confluence of the previous high four-hour, Fibonacci 61.8% one-day and SMA5 four-hour.  

The next upside target is aligned around $1849, the convergence of the SMA200 one-day, SMA10 one-day and Fibonacci 38.2% one-week.

Buyers could then challenge $1853, the intersection of the SMA50 four-hour and Fibonacci 38.2% one-day.

Powerful hurdle at $1857 (Fibonacci 23.6% one-day/ SMA50 one-day) will continue to offer strong resistance to the price.

Meanwhile, the downside remains exposed towards $1834, the previous day.

A break below the latter could put the Fibonacci 61.8% one-week at $1830 to test.

The Fibonacci 61.8% one-month at $1825 is the last line of defense for the XAU bulls.

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.