Gold Price Forecast: XAU/USD appears pressured towards $1,890 – Confluence Detector

• Gold price prints four-day downtrend as US Dollar licks its wounds near multi-day low.
• Failure to stay beyond $1,910 hurdle keeps XAU/USD bears hopeful amid mixed sentiment.
• Fed talks, China concerns should be watched carefully for clear directions.

Gold price (XAU/USD) remains depressed around the weekly low near the $1,900 threshold, declining for the fourth consecutive day, as the US Dollar bounces off a multi-day low amid contrasting signals from the US data and Federal Reserve (Fed) officials. Also challenging the Gold price are the mixed concerns surrounding China, one of the biggest XAU/USD consumers. Furthermore, a pause in the US Treasury bond yields amid fresh recession fears also weighs on the Gold price amid a light calendar. That said, central bankers could entertain the Gold traders ahead of the likely inactive week due to the Chinese Lunar New Year holidays.

Also read: Gold Price Forecast: Recession fears weighing on XAU/USD

Gold Price: Key levels to watch

The Technical Confluence Detector shows that the gold price grinds lower past the $1,910 key resistance comprising the 50-HMA, 5-DMA and Middle band of the Bollinger on the hourly play.

Also keeping the Gold sellers hopeful is the metal’s recent dip below the previous low on the Four-hour (4H).

It’s worth noting, however, that the $1,900 threshold that encompasses Fibonacci 38.2% on one week and the Lower Bollinger on 4H appears a tough nut t to crack for short-term XAU/USD bears.

Following that, a slump towards the $1,890 support confluence, including the Fibonacci 61.8% on weekly and 10-DMA, can’t be ruled out.

Meanwhile, recovery moves need validation from the $1,910 hurdle to recall the Gold buyers. Also challenging XAU/USD bulls is the Pivot point one-month R3, near $1,920.

It should be noted that the previous weekly high of around $1,925 and the $1,930 could act as the last defense of the Gold bears.

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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.