Gold Price Forecast: XAU/USD eyes February highs at $1,975 amid damp mood – Confluence Detector

• Gold price is consolidating near weekly highs above $1,950 amid indecisive markets.
• The Ukraine updates, Fedspeak and yields’ price action will be closely followed.
• Gold price has room to rise towards $1,990 amid Ukraine woes, bullish technicals.

After two straight days of gains, gold price is consolidating the upside amid indecisive markets. The US dollar is recovering the early lost ground while the Treasury yields are stabilizing at higher levels. Investors are awaiting a clarity on the Russia-Ukraine crisis amid ongoing hostilities in Ukraine and a stronger Western response on Russia. Gold traders are also weighing in the recent hawkish Fedspeak against the US economic outlook and soaring inflation. Looking ahead, volatility in gold price could briefly return, as the focus now shifts towards next week’s US Nonfarm Payrolls (NFP) release.  

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Gold Price: Key levels to watch

The Technical Confluences Detector shows that gold price is looking to find acceptance above $1,960, the convergence of the Fibonacci 23.6% one-day, the previous year’s high and SMA5 four-hour.

Gold bulls will then target the previous day’s high of $1,966, with the $1,970 round level next in sight. The pivot point one-day R1 aligns at that point.

The previous month’s high of $1,975 will be the level to beat for bulls.

Alternatively, the immediate support awaits at the Fibonacci 61.8% one-week of $1,955, below which sellers will look out for the Fibonacci 61.8% one-day support at $1,949.

Failure to resist above the latter will kickstart a fresh downswing towards the pivot point one-day S1 at $1,942.

The confluence of the previous day’s low and SMA5 one-day at $1,937 will challenge the bullish commitments should the downside pick up steam.

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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.