Gold Price Forecast: XAU/USD bulls still eye $1,825 amid year-end trading – Confluence Detector

• Gold price has kicked off the week on a right footing, eyeing key $1,825 resistance.
• China’s further reopening boosts risk sentiment, sends Gold price higher.
• Gold’s uptrend remains intact despite holiday-thinned market conditions.

Gold price is extending the previous week’s uptrend, as a holiday-thinned light trading offers buyers conducive conditions. The main catalyst, however, behind the Gold price advance is China’s further Covid reopening-led risk-on sentiment. The market optimism is weighing negatively on the safe-haven US Dollar, which makes the USD-priced bullion more expense for foreign buyers. The US S&P 500 futures are up over 0.50% on the day, representing the upbeat market mood. Looking ahead, the risk trends and the US Dollar price action will continue influencing the bright metal amid thin liquidity and absence of high-tier US economic data.

Also read: Gold challenges a strong dynamic resistance 

Gold Price: Key levels to watch

The Technical Confluence Detector shows that the gold price needs a fresh spurt of buying to cross the Fibonacci 38.2% one-week resistance at $1,810.

The next critical upside hurdle is seen at the Fibonacci 23.6% one-week at $1,814, above which a run toward the pivot point one-week R1 at $1,820 cannot be ruled out.

The previous week’s high at $1,825 is the level to beat for Gold bulls.

Alternatively, the SMA5 one-day at $1,804 offers immediate support to Gold buyers. A firm break below the latter will put the $1,800 level at risk. That level is the confluence of the SMA10 one-day, Fibonacci 61.8% one-week and SMA200 one-hour.

In case bears flex their muscles, then $1,797 will be seen as a powerful barrier, where the Fibonacci 61.8% one-day aligns.  

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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.