Gold Price Forecast: XAU/USD grinds higher past $2,000 key support – Confluence Detector

• Gold price cheers upside break of $2,000 confluence around 13-month high marked in the last week.
• Downbeat US inflation, unimpressive Fed Minutes join recession woes to underpin XAU/USD run-up.
• Gold price needs an extra boost from risk catalysts, additional US inflation clues to challenge a record high of $2,075.

Gold price (XAU/USD) picks up bids to refresh intraday high around $2,020 as it prints a three-day winning streak after crossing the key $2,000 hurdle, now support, amid the downbeat US Dollar.

US Dollar Index (DXY) appears all set for the consecutive fifth weekly loss on downbeat prints of the US inflation data, per the Consumer Price Index (CPI). Also exerting downside pressure on the DXY, as well as fueling the Gold price, are Federal Reserve (Fed) officials’ signals of easy monetary policy ahead, via the FOMC Minutes and recent public speeches. Elsewhere, optimism surrounding China’s economic growth, despite recently mixed inflation and trade numbers, joins the recession woes in the West, to also propel the XAU/USD prices.

That said, the market’s latest inaction amid a light calendar and repetition of the comments from policymakers seem to restrict immediate Gold price moves. However, more proof of the easing of US inflation and Fed policy pivot are eyed for immediate directions.

Also read: Gold Price Forecast: XAU/USD poised to test $2,043 resistance on dovish Federal Reserve outlook

Gold Price: Key levels to watch

As per our Technical Confluence Indicator, the Gold price manages to stay firmer past the $2,000 key support comprising the Fibonacci 38.2% on one-week, Pivot Point one-day S1 and previous daily low, not to forget the psychological mark.

Not only a clear upside break of the $2,000 mark but the XAU/USD’s sustained trading beyond the immediate resistances, now supports, also keeps the Gold buyers hopeful.

Among them is the Fibonacci 23.6% in one-week, around $2,014, followed by $2,010 support confluence including the previous monthly high and SMA10 on four-hour (4H).

With this, the Gold price appears all set to challenge the $2,030 hurdle, encompassing Pivot Point one-day R1.

Following that, the previous weekly high near $2,035 and Pivot Point one-week R1 around $2,045 can prod the XAU/USD bulls before directing them to the previous yearly high of $2,070 and then to the record high marked in 2020 around $2,075.

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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.