Gold price is posting modest gains but remains well within the recent trading range above the $1750 level so far this Tuesday. A flight to safety amid intensifying stagflation fears offers support to the traditional safe-haven gold. Further, a pause in the US Treasury yields rally aides the rebound in gold price. However, the Fed’s tapering expectations continue to limit gold’s upside potential, as investors await the return of full markets and Wednesday’s critical US inflation report for a fresh directional move in gold price.
Read: Gold Price Forecast: Will XAU/USD find a foothold above 21-DMA? US inflation in focus
According to the Technical Confluences Detector, gold is moving back and forth, without a clear directional bias, with a bunch of healthy barriers stacked up in either direction.
Immediate upside is capped at $1762, which is the convergence of the Bollinger Band one-hour Upper and the previous day’s high.
The next significant topside hurdle is seen at $1765, where the Fibonacci 38.2% one-month aligns.
The Fibonacci 61.8% one-week at $1767 will then challenge the bearish commitments.
Gold bulls need to find acceptance above the pivot point one-day R3 at $1771 to initiate a meaningful uptrend.
Alternatively, gold buyers will once again challenge bids at $1755, the convergence of the Fibonacci 23.6% one-week and Fibonacci 38.2% one-day.
A sustained move below the latter will expose the $1750 psychological level, below which the next downside target at $1748 could get tested. That level is the Fibonacci 23.6% one-month.
The next cushion appears around $1745, where the previous week’s low intersects the pivot point one-day S2.
The pivot point one-week S1 at $1741 will be the level to beat for gold bears.
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.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2021 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.