Despite hot US inflation bringing back rate hike expectations on the table from the Fed and the ECB, gold price continues to benefit from its increased demand as an inflation hedge. Holiday-thinned market conditions are also boding well for the bright metal, as attention shifts towards Friday’s US Michigan Consumer Sentiment data. In meantime, the global tightening expectations will continue to influence gold price.

Read: Gold Price Forecast: Will US inflation trigger a sustained move above $1,834 in XAU/USD?

Gold Price: Key levels to watch

The Technical Confluences Detector shows that gold price needs acceptance above the previous day’s high of $1,869 to extend the bullish momentum towards pivot point one-day R1, which is placed at $1,873.

A firm break above the latter will open doors towards $1,884, where the pivot point one-month R3 aligns.

Alternatively, if the sellers manage to find a strong foothold below the confluence of the Fibonacci 23.6% one-day and pivot point one-week R2 at $1,859, then the corrective pullback could gain traction.

The next downside target is seen at the previous low one-hour at $1,855, below which fierce support around $1,850 will come into play.

That area is the intersection of the pivot point one-month R2, Fibonacci 38.2% one-day and SMA5 four-hour.

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.

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