Gold Price Forecast: XAU/USD needs to crack $1759 to unleash further upside – Confluence Detector

Gold looks to extend the bounce above $1750 amid weaker US dollar 

Softer US CPI eases Fed’s tapering expectations, downs the yields. 

Gold Weekly Forecast: Eyes $1,750 on NFP-inspired USD strength 

 Gold price is holding the higher ground above $1750, looking to build onto its recovery from five-month lows, as the US dollar nurses losses amid fading hawkish Fed expectations and weaker Treasury yields. The US July CPI report showed signs of inflation peaking, cooling expectations of an imminent Fed’s tapering. Meanwhile, concerns over the economic impact of the spread of the Delta covid variant globally also underpin gold’s safe-haven appeal. Looking ahead, all eyes remain on the US PPI and Jobless Claims data to sustain the recovery momentum above the $1750 psychological level.
Gold Price: Key levels to watch 

 The Technical Confluences Detector shows that gold has eased from a critical barrier at $1759, which is the intersection of the previous week’s low and the previous high four hour. Acceptance above the latter is critical to unleashing further recovery gains towards $1763, the pivot point one-day R1. The next powerful resistance is aligned at $1766, the previous month’s low. A sustained move above that level could trigger a rally towards $1775. At that point, the Fibonacci 23.6% one-week, pivot point one-month S1 and SMA50 four-hour meet. On the downside, the $1752 demand zone offers immediate support, where the SMA5 four-hour, previous low four-hour and Bollinger Band one-hour Middle converge. The Fibonacci 23.6% one-day at $1747 could emerge as the next relevant support. Further south, $1743 will be the level to beat for the bears. That level is the confluence of the Fibonacci 38.2% one-day and SMA10 four-hour.

Credit by FXSTREET

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