top of page

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

  • Writer: analysiswatch
    analysiswatch
  • Dec 20, 2021
  • 1 min read





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.

 
 
 

Opmerkingen


2b94f773-a237-4da7-a599-6b42314ed9e6.png

Risk Disclosure: AnalysisWatch will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
AnalysisWatch would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore AnalysisWatch doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

bottom of page