Gold Price Forecast: XAUUSD bears eye $1,838 and $1,836 as next downside targets – Confluence Detector

• Gold Price is back in the red, falling for the second straight day.
• Less hawkish Fed minutes failed to impress gold bulls but not for long.
• XAUUSD inches closer towards critical 200-DMA support ahead of US data.

Gold Price is feeling the pull of gravity after less hawkish FOMC minutes released on Wednesday offered a brief reprieve to XAU bulls. The bright metal is extending the retreat from two-week highs of $1,870, as the US dollar clings onto minor recovery gains amid a cautious risk environment. The precious metal, however, seems to find some comfort from falling Treasury yields, as investors digest the latest Fed minutes, which squashed hopes for a more than 50 bps rate hike in the coming months. Going forward, gold’s fate hinges on the key US GDP, Pending Home Sales and PCE data, as it could impact the central bank’s expectations.

Also read: Gold Price Forecast: Key $1,838 support could be at risk ahead of US GDP

Gold Price: Key levels to watch

The Technical Confluences Detector shows that the Gold Price is facing a wall of powerful resistance levels, as it attempts a minor comeback.

Where the Fibonacci 23.6% one-day retracement and the 100-four-hour SMA converge at $1,848, provides an immediate upside barrier.

The next resistance is envisioned at around $1,850, where the Fibonacci 38.2% one-day retarcement, 5-four-hour SMA, and the previous high on the four-hour chart align.

Bulls will then look to take out the meeting point of the 5-day SMA and the 100-hour SMA at $1,854.

Further up, the Fibonacci 61.8% one-day retracement at $1,858 will be the level to beat for XAU buyers.

Alternatively, a sustained break below the $1,838 demand area, will trigger a fresh downswing. That price zone is a confluence of the previous day’s low, the daily S1 pivot point and the 200-day SMA.

Strong support at the intersection of the Fibonacci 23.6% weekly retracement, and the 10-day SMA at $1,836 will come to the rescue of bulls.

Should the selling pressure intensify, a steep drop towards the S2 daily pivot point at $1,827 will be in the offing.

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.