Gold price is snapping its week-long winning streak, as bulls take a breather ahead of Tuesday’s critical US Retail Sales release. Underlying surging inflationary risks and a dip in the US consumer confidence have added to the Fed’s dilemma on the timing of a potential rate hike, which renders positive for gold buyers. Meanwhile, upbeat Chinese economic data have lifted the overall market mood at the start of a fresh week, warranting caution for the gold price rally.
Gold Price: Key levels to watch
The Technical Confluences Detector shows that gold price has recaptured a powerful support-turned-resistance at $1,860, which is the convergence of the Fibonacci 38.2% one-day and SMA10 four-hour.
The Fibonacci 23.6% one-day at $1,864 will likely challenge the rebound, with the next upside target envisioned at $1,869, the previous day’s high.
Further up, the pivot point one-day R1 at $1,874 will be on the buyers’ radars. Acceptance above the latter will trigger a fresh advance towards $1,884, the confluence of the pivot point one-month R3 and pivot point one-day R2.
Alternatively, if the sellers find control below daily lows of $1,756, then the Fibonacci 61.8% one-day at $1,853 will be put at risk.
The level to beat for gold bears is at around $1,850, which is the intersection of the pivot point one-month R2, Fibonacci 38.2% one-week and SMA5 one-day.
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About Technical Confluences Detector
The TCD (Technical Confluences Detector) 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. If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.