top of page
  • Writer's pictureanalysiswatch

Title: Gold Price Forecast: XAU/USD cheers flight to safety, key levels to watch

Dec 20, 2021 3:58 AM ET

By: AnalysisWatch

Gold prices have retreated from their three-week highs but remain supported by the low-risk market profile. Uncertainties surrounding the Omicron COVID variant are weakening investor confidence. Meanwhile, US Senator Joe Manchin left Democrats hanging by rejecting the Biden bill, jeopardizing the $1.75 budget repair plan. Falling government bond yields continue to weaken the US dollar and provide additional support for gold. Given the thin calendar, overall market sentiment will continue to play a crucial role in the gold price.

The Technical Confluences Detector shows that gold seems to have found some support at $1,797, the convergence of the SMA50 on a daily basis, the SMA5 on a four-hour basis, and the 23.6% Fibonacci Fib on a weekly basis.

Failure to hold above the latter will trigger a decline towards $1,791, where the 38.2% Fibonacci weekly line coincides with the SMA100 daily line.

Further south, strong support awaits at $1,787, the intersection of the SMA5 daily and the 23.6% Fibonacci monthly.

The last line of defense for gold buyers is seen at $1,783. At this point, the daily SMA10 meets the daily S2 pivot point.

Alternatively, new buying opportunities arise only on a sustained break above the $1,803-$1,804 supply zone, where the one-month Fibonacci 38.2% level, the one-day Fibonacci 38.2% level, and the previous four-hour high converge.

The Fibonacci 61.8 daily level at $1,807 offers strong upside resistance. The previous day's high of $1,814 will be next on buyers' radar.

0 views0 comments
bottom of page