Gold Price Forecast: XAU/USD downside opening up towards $1,817 – Confluence Detector

• Gold Price extends the previous sell-off, with more pain in the offing.
• Hawkish Fedspeak, pre-US inflation anxiety boost the USD despite falling yields.
• Gold Price Forecast: On its way to challenging the $1,800 threshold.

Gold Price is testing the critical support, licking its wounds near three-months troughs below $1,850. The resurgent US dollar haven demand amid looming global growth and inflation fears weighed negatively on Gold Price, as traders ignored the pullback in the Treasury yields from multi-year highs. Additionally, hawkish Fedspeak also boosted the US dollar, exacerbating the pain in XAU/USD. Attention turns towards the critical US inflation release for a fresh direction in Gold Price.

Also read: US April CPI Preview: Has inflation peaked?

Gold Price: Key levels to watch

The Technical Confluences Detector shows that the Gold Price is testing the bullish commitments at critical support of $1,836. At that level, the SMA200 one-day, the previous day’s low and SMA5 one-hour coincide.

The next relevant support awaits at the previous low four-hour at $1,833, below which a fresh drop towards the pivot point one-day S1 at $1,827 cannot be ruled out.

Further down, sellers will target the pivot point one-week S2 at $1,822. The last line of defense for gold bulls is seen at $1,817, the pivot point one-day S2.

On the upside, any recovery could gain momentum only on a sustained break above the previous high four-hour at $1,841, above which the Fibonacci 23.6% one-day could be tested.

The confluence of the pivot point one-month S1 and Fibonacci 38.2% one-day at $1,847 will come into play.

The previous week’s low at $1,850 could be also on the buyers’ radars, opening gates towards $1,853, the intersection of the Fibonacci 61.8% one-day and pivot point one-week S1.

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.