Gold Price Forecast: XAU/USD targets $1797 on the road to recovery – Confluence Detector

Gold price is rebounding over 1% on the last day of this eventful week, although remains on track to book a 5% loss on the weekly basis. The retreat in the US Treasury yields is boding well for gold price, as it recoups a part of the Fed-led blow. Earlier this week, the Fed unexpectedly turned hawkish and signalled two rate hikes in 2023, which weighed negatively on non-yielding gold. Meanwhile, the US dollar index clings onto two-month highs heading into the weekly closing.  

Gold price is likely to remain influenced by the dynamics in the yields and the dollar and a light economic calendar. Broader market sentiment amid quadruple witching will also impact gold price.

Read: Gold is bearish below 1790 zone

Gold Price: Key levels to watch

The Technical Confluences Detector shows that gold price is staging a decent comeback towards the $1797 resistance area, where the Fibonacci 61.8% converges with the SMA10 four-hour.

Further up, the bulls will challenge the $1800 round number.

The confluence of the pivot point one-month S1 and pivot point one-day R1 at $1811 will then emerge as a strong upside hurdle.

Alternatively, a bunch of minor support levels offers immediate support around $1889, which is the intersection of the Fibonacci 38.2% one-day and the Bollinger Band one-hour Upper.

The next relevant support is seen at $1781, the meeting point of the Fibonacci 23.6% one-day, SMA5 four-hour and SMA10 one-hour.

The previous low on the four-hour at $1776 remains the last hope for the gold bulls.

Here is how it looks on the tool       

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.