Gold Price Forecast: $1,920 and $1,917 pose dual barriers for XAU/USD bears – Confluence Detector

• Gold price retreats from nine-month high as bulls struggle to defend one-month-old winning streak.
• Hawkish Federal Reserve comments, pick-up in yields allow US Dollar to lick its wounds and probe the XAU/USD buyers.
• Preliminary PMIs for January, advance readings of US Q4 2022 GDP will provide fresh impulse during pre-Fed silence.

Gold price (XAU/USD) pares recent gains as bulls take a breather at the highest levels since April 2022 amid a recent pick-up in the US Dollar. Also likely to probe the Gold buyers could be the cautious mood ahead of the key data/events, as well as the pre-Fed blackout period.

That said, Federal Reserve Bank of New York President John Williams and Fed Vice Chair Lael Brainard was the latest ones to back the higher rates as policymakers sneak into the pre-February Federal Open Market Committee (FOMC) mum starting this Saturday. On the other hand, downbeat US data and looming fears of inflation keep the recession risk on the table and weigh on the Gold price, due to the US Dollar’s haven demand. It’s worth noting that the US Treasury bond yields recover from the multi-month low and allow the greenback to probe the XAU/USD bulls of late.

Moving on, Gold traders will have a busy week as the first readings of January’s activity data and the US fourth quarter (Q4) Gross Domestic Product (GDP) are on the calendar. Also important will be the Fed’s preferred inflation gauge, namely the Core Private Consumption Expenditure (PCE) Price Index, for December.

Also read: Gold Price Forecast: Buyers maintain the pressure with eyes on $2,000

Gold Price: Key levels to watch

The Technical Confluence Detector shows that the Gold price floats above the key $1,920 support comprising the previous weekly high and Fibonacci 38.2% on one day. Also challenging the short-term XAU/USD downside is the $1,917 mark that encompasses Pivot Point one month R3.

Following that, Fibonacci 23.6% and 38.2% in one week can challenge the Gold bears around $1,910 and $1,901 respectively.

It’s worth noting that the $1,900 could act as the last defense of the XAU/USD buyers.

Alternatively, the previous high on one day and four-hour join the upper Bollinger on the 15 minutes to restrict the immediate upside of the Gold price near $1,936.

In a case where Gold buyers manage to cross the $1,936 hurdle, a convergence of the Pivot Point one week R1 and Upper Bollinger on one hour, close to $1,941, could challenge the XAU/USD bulls.

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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.