Gold Price Forecast: XAU/USD faces a wall of resistances above $1,800 ahead of US inflation – Confluence Detector

• Gold price buyers appear non-committal near $1,800, await US PCE inflation.  
• Fed’s hawkishness and stronger US data will keep gold’s upside capped.
• Gold price rebounds ahead of US PCE inflation, not out of the woods yet.

Gold bulls seem to come up for the last dance ahead of the Fed’s favorite inflation gauge, the PCE Price Index. As the dust settles over the Fed’s hawkishness-led market turmoil, the US dollar is losing its demand as a safe haven. Strengthening Treasury yields, however, keeps the recovery mode capped in gold price. Gold price remains on track to book its sharpest weekly decline since November, courtesy of the hawkish Fed outlook on the interest rates and balance-sheet reduction.

Read: US PCE Inflation Preview: Dollar rally has more legs to run

Gold Price: Key levels to watch

The Technical Confluences Detector shows that the gold price is fading its road to recovery from two-week troughs, having met strong supply at $1,800. At that level, the Fibonacci 23.6% one-day coincides with the SMA5 four-hour.

The next resistance awaits at $1,803, the intersection of the Fibonacci 38.2% and one-day, SMA50 one-day.

The SMA200 one-day sitting at $1,806 will then challenge the bearish commitments, as bulls move towards a powerful hurdle at $1,810. That level is the convergence of the Fibonacci 61.8% one-day, SMA200 four-hour and pivot point one-week S1.

On the flip side, the immediate cushion is aligned at the SMA100 one-day at $1,796, below which sellers will retest the previous day’s low of $1,792.

The pivot point one-week S2 will be the line in the sand for gold optimists.

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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.