Gold Price Forecast: XAU/USD bulls eye $1,787 and $1,796 ahead of key US data – Confluence Detector

• Gold price rises for the third-straight day, hitting two-week highs on Thursday.  
• Dovish Fed Chair Powell’s message and China’s reopening optimism smash the US Dollar.
• Gold price sees a smooth sail toward the previous month’s highs and SMA200 one-day.   

Gold price is sitting at the highest level unseen in two weeks near $1,780, consolidating the three-day winning streak so far this Thursday. The main underlying reason behind the Gold price upsurge is a clear dovish message from Federal Reserve Chair Jerome Powell, sealing in a 50 basis points (bps) rate hike in December. Powell’s dovish take leaves the US Dollar licking its wounds across the board. China’s reopening optimism is boding well for risk appetite, boosting Gold price at the expense of the safe-haven US Dollar. Mixed US economic data offered a mixed picture of the state of the American economy, collaborating with the US Dollar weakness. All eyes now remain focussed on Friday’s US Nonfarm Payrolls release, as the Fed enters the ‘blackout period’ ahead of the December 13-14 monetary policy meeting. In the meantime, the US Core PCE inflation and ISM Manufacturing PMI data could be also closely scrutinized.

Also read: US October PCE inflation & ISM Manufacturing PMI Preview: Seen through Fed’s eyes

Gold Price: Key levels to watch

The Technical Confluence Detector shows that the gold price needs a clear break above the previous high four-hour at $1,780 in order to initiate a fresh advance toward the previous month’s high of $1,787.

Doors will then open up toward the SMA200 one-day at $1,796, with the next bullish target seen at the $1,800 threshold.

Alternatively, the immediate support is envisioned at $1,772, the pivot point one-week R1, below which the previous day’s high at $1,770 will get tested.

Further south, the Fibonacci 23.6% one-day support at $1,765 will come into play. The previous week’s high at $1,761 will be a tough nut to crack for Gold bears.

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.