Gold price is pressured by the hawkish Fed’s rhetoric-driven sell-off, as Jerome Powell and Company explicitly said there is room for interest rate hikes while adding that the plans for the balance-sheet reduction are in the offing. The US Treasury yields continue taking advantage of the Fed’s hawkishness, underpinning the dollar bulls at gold’s expense. Further, expectations of aggressive Fed tightening killed the appetite for riskier assets such as stocks and boosted the greenback’s safe-haven demand, exerting additional bearish pressure on gold price. The focus now shifts towards the US top-tier economic releases for fresh trading opportunities in gold.
Read: Fed fallout set to run further
The Technical Confluences Detector shows that the gold price is attempting a bounce after having found support at the convergence of the SMA200 four-hour and pivot point one-week S1 at $1,809.
In doing so, the bright metal has cleared the Fibonacci 23.6% one-month at $1,813 to take on the previous day’s low of $1,815.
Acceptance above the latter will call for a fresh rally towards $1,822, the meeting point of the Fibonacci 61.8% one-week and SMA100 four-hour.
Further up, the Fibonacci 38.2% one-day at $1,828 will guard the bullish attempts.
On the flip side, if the abovementioned $1,809 support is breached on a sustained basis, then sellers will look to test a powerful cushion around $1,805.
That level is the confluence of the previous week’s low, SMA200 one-day and SMA50 one-day.
The last line of defense for gold buyers is seen at the Fibonacci 38.2% one-month at $1,800.
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.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.