Gold Price Forecast: $1,792 remains a tough nut to crack for XAU/USD bulls – Confluence Detector

• Gold price sets off the week on the right footing after Friday’s rebound.
• $1,792 is the tough nut for gold bulls amid Fed’s tightening expectations.
• Gold sellers eye $1,750 as Fed stays on tightening path.

The mixed US employment report fails to deter the Fed’s faster tapering and tightening expectations, which could likely temper gold’s solid recovery from monthly troughs. Although the downside appears cushioned in the bright metal amid looming uncertainty over the Omicron covid variant and upcoming US Inflation data. The renewed upside in gold could pick up pace should the Treasury yields and the US dollar fade their rebound, in the face of a data-light docket.

Read: Gold Price Forecast: XAU/USD bears to test bulls’ commitments at critical resistance

Gold Price: Key levels to watch

The Technical Confluences Detector shows that the gold price is consolidating Friday’s rebound below the SMA10 one-day at $1,785.

Gold bulls await a sustained break above the latter to test a strong upside barrier in $1,787, which is the confluence of the Fibonacci 23.6% one-month, SMA50 four-hour and Friday’s high.

Critical resistance at $1,792 is the level to beat for gold bulls. That price zone is the intersection of the SMAs50, 100 and 200 one-day.

The pivot point one-day R2 at $1,800 will challenge the further upside.  

On the flip side, the intersection of the Fibonacci 38.2% one-week and one-month at $1,779 will be crucial for buyers to defend.

A sharp sell-off below the latter cannot be ruled out, with eyes on $1,772, the meeting point of Fibonacci 61.8% one-day and Fibonacci 23.6% one-week.

Further south, a test of the November lows of $1,759 will be in the offing.

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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.