Gold Price Forecast: XAU/USD grinds lower past $1,990 hurdle, focus on Fed, US NFP – Confluence Detector

• Gold price remains depressed after slipping beneath short-term key support confluence.
• Sour sentiment, firmer US Dollar weigh on XAU/USD price ahead of Fed, US NFP.
• Off in Europe, UK and China restrict market moves as crucial week begins.

Gold Price (XAU/USD) holds lower grounds within a short-term trading range past $2,000 as holidays in multiple markets restrict the bullion’s moves as the key week begins. Even so, the US Dollar’s recent run-up, backed by upbeat US inflation clues, weighs on the Gold price. On the same line, the First Republic bank woes, hawkish Fed bets and downbeat China PMIs for April also exert downside pressure on the Gold price amid a sluggish start to the crucial week comprising multiple central bank monetary policy meetings and the US jobs report for April.

It’s worth mentioning, however, that the US Treasury bond yields remain lackluster and the Wall Street also witnessed an upbeat week in the last, which in turn keeps the Gold buyers hopeful as crucial data/events loom. 

Also read: Gold Price Forecast: XAU/USD remains confined in a familiar range ahead of key event/data risks

Gold Price: Key levels to watch

As per our Technical Confluence indicator, the Gold price remains depressed below the $1,990 resistance confluence, previous support, amid Monday’s inactive markets. That said, the stated level comprises Fibonacci 61.8% on one-week and one-month, as well as Fibonacci 38.2% on one-day.

In addition to the $1,990 hurdle, the 5-DMA and Fibonacci 23.6% on one-day, near $1,993, also restrict short-term XAU/USD upside.

Even if the Gold price crosses the $1,993 hurdle, a joint of the previous daily high and Fibonacci 38.2% on one-week, close to the $1,998 mark, will precede the $2,000 psychological magnet to challenge the XAU/USD buyers.

Meanwhile, the metal’s road towards the south appears smoother with minor supports near $1,980 comprising Pivot Point one-day S1.

Following that, the $1,970 support level comprising the lower Bollinger band on one-day and Pivot Point one-day S2 can act as the last defense of the Gold buyers.

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.