Not even the stellar US Nonfarm Payrolls could budge gold bulls, as escalating Russia-Ukraine tensions supersede and keep the safe-haven demand for the bright metal alive and kicking in. The ongoing crisis intensified after Russia attacked the Zaporizhzhia Nuclear Power Plant, Europe’s largest nuclear power station in Ukraine. Flight to safety remained the main underlying theme, boosting safe-havens such as gold and the dollar. The US NFP outpaced expectations but it was the disappointment in wages that exacerbated the pain in the Treasury yields, reviving bullish sentiment around gold price.

In the week ahead, the developments surrounding the Russia-Ukraine war will lead the way, as the economic calendar remains relatively light until Thursday’s US inflation report. Also, the Fed enters the blackout period ahead of the March 15-16 monetary policy meeting.

Read: NFP Quick Analysis: Jobs jump again, adding fuel to the war-related dollar fire

Gold Price: Key levels to watch

The Technical Confluences Detector shows that gold price is looking for acceptance above the previous year’s high of $1,961 during its latest leg up.

The next resistance is aligned at the pivot point one-day R3 at $1,964. Should buyers regain a strong foothold above the latter, then a rally for a retest of 13-month highs of $1,975 cannot be ruled out.

Gold bulls will then gear up for a fresh upswing to conquer the $2,000 mark.

On the flip side, if the $1,961 resistance holds, then gold price could challenge a dense cluster of healthy support levels around $1,950.

At that level, the pivot point one-week R1 and the previous high four-hour converge.

Bears will then target the pivot point one-day R1 at $1,944, below which the Fibonacci 61.8% one-week at $1,938 will come into play.

Deeper declines will expose the intersection of the Fibonacci 38.2% one-day and SMA10 four-hour at $1,933.

Here is how it looks on the tool


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.

This article was originally published by the original article here.


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