Gold Price Forecast: Inflation data, $1,973 support to restrain XAU/USD bears – Confluence Detector

• Gold price retreats from weekly top as pre-data anxiety escalates.
• EU, US inflation becomes crucial for XAU/USD amid looming banking crisis, hawkish central bank talks.
• Upbeat China data, easing hawkish Fed bets fail to impress Gold buyers.
• Pullback remains elusive beyond $1,973; XAU/USD bulls can stay hopeful beyond $1,960.

Gold price (XAU/USD) pares weekly losses while easing from an intraday high to $1,980 during early Friday morning in Europe. In doing so, the yellow metal traces the market’s consolidation ahead of the key Eurozone and the US inflation clues. Also likely to have weighed on the Gold price could be the recent hawkish comments from the Fed policymakers, including Chairman Jerome Powell.

However, the recently firmer China official PMIs for March and receding fears of a banking crisis join easing hawkish Fed bets to keep the Gold buyers hopeful. On the same line are the mixed US data and the US Dollar’s rejection from Brazil and China.

Even so, the XAU/USD bears aren’t off the table as central bankers remain ready for more rate hikes, if needed to tame the inflation woes. As a result, today’s Eurozone Harmonised Index of Consumer Prices (HICP) for March and the United States Core Personal Consumption Expenditure (PCE) Price Index for February will be closely watched for clear directions.

Also read: Gold Price Forecast: XAU/USD needs acceptance above $1,993 for further upside, United States PCE eyed

Gold Price: Key levels to watch

As per our Technical Confluence Indicator, the Gold price retreats towards the short-term key support surrounding $1,973, comprising 10-DMA and Fibonacci 38.2% on one day.

Should the XAU/USD bears manage to conquer the $1,973 support, Fibonacci 38.2% on one week joins the Pivot Point one-day S1 to highlight $1,964 as another important level to watch before giving control to the bears.

Further south, $1,960 level including the previous monthly high acts as the last defense of the Gold buyers.

On the contrary, Fibonacci 61.8% on one week joins the upper Bollinger bank on the four-hour to restrict immediate upside of the Gold price.

Following that, Pivot Point one-day R1 could act as an extra check for the XAU/USD bulls around $1,993 before directing the Gold price towards the $2,000 psychological magnet.

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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.