Gold Price Forecast: XAUUSD bulls have the upper hand, could target $1,800 – Confluence Detector

• Gold corrects from a nearly three-month high amid the emergence of some USD buying.
• Bets for less aggressive Fed rate hikes act as a tailwind and help limit any further losses.
• Any meaningful pullback might be seen as a buying opportunity and remain cushioned.
• The XAUUSD still seems poised to climb further towards the $1,800 psychological mark.

Gold kicks off the new week on a weaker note and reverses a major part of Friday's gains to its highest level since August 17. A goodish pickup in the US Treasury bond yields, bolstered by Federal Reserve Governor Christopher Waller's hawkish comments on Sunday, assists the US Dollar to stage a solid bounce from the post-US CPI slump to a nearly three-month low. This, in turn, is seen as a key factor exerting some downward pressure on the dollar-denominated commodity. That said, rising bets for smaller interest rate hikes by the US central bank help limit deeper losses for the non-yielding yellow metal, at least for the time being.

Gold Price: Key levels to watch

The Technical Confluence Detector shows that any subsequent slide is likely to find decent support near the $1,756-$1,753 region - comprising Fibonacci 61.8% 1-Day and Pivot Point 1-Day S1. A convincing break below could accelerate the fall towards the $1,745 area - Fibonacci 23.6% 1-Week and Bollinger Band 1-Day Upper. Some follow-through selling below the $1,741 region - Pivot Point 1-Day S1 - will expose the $1,734 zone - Pivot Point 1-Day S3 - and the $1,730 level - Previous Month High and SMA 100 1-Hour.

On the flip side, immediate resistance is pegged near the $1,774 region - Pivot Point 1-Month R2. A sustained strength beyond should allow bulls to reclaim the $1,800 psychological mark - Fibonacci 161.8% 1-Month. The latter should act as a pivotal point, which if cleared decisively should pave the way for an extension of the upward trajectory witnessed over the past two weeks or so.

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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.