- Gold has broken above the $1,800 mark, hitting the highest levels since February.
- The Confluence Detector is showing that XAU/USD has very few barriers through $1,850.
- Bears are lurking at resistance structure, eyeing a correction ahead of NFPs.
Update: As per the prior gold analysis from the start of the week, Gold Price Analysis: Bulls and bears battle it out at critical resistance, and Gold Price Analysis: Bulls back in town through critical resistance, where targets of a ‘-272% Fibo’ that came in ‘at 1,810‘ and ‘a -61.8% Fibo‘ that ‘is located at 1,820‘ were noted, the bulls have indeed taken up the discount from the daily correction and gone on to score a pre Nonfarm payrolls high on Thursday of 1,817.97.
‘The price has dropped further than anticipated, which is a bonus for the bulls, clearing out stale stops in what will be presumed to be the foundations for an extension to the upside.’
Live market, daily chart
The gold price has now reached a resistance structure.
Gold would now be expected to correct back to test the prior resistance which has a confluence with a 38.2% Fibonacci retracement of the latest bullish impulse.
With that being said, on the hourly time frame, there is a compelling case for demand higher up at the confluence of the daily 23.6% Fibo that meets the hourly 38.2% Fibo and the 10 EMA.
Should there be a steady correcting drift and deceleration into the key Nonfarm Payrolls that somehow disappoints, then the US dollar could find its self in more trouble which would be expected to support the gold price and potentially lead to another bullish impulse.
It has finally happened – Gold has staged a convincing break above the $1,800, hitting a high of $1,813.63 at the time of writing. Falling US Treasury yields have prompted investors to buy gold, and cascading stop-losses have also been attributed to the upswing in the price of the precious metal.
How is gold positioned on the technical charts? Examining clusters of support and resistance lines can help provide answers.
The Technical Confluences Detector is pointing to showing that the next resistance line is at around $1,822, which is where the Pivot Point one-week Resistance 3 hits the gold price chart.
The next substantial hurdle for XAU/USD awaits at $1,850, which is the convergence of the 200-day Simple Moving Average and the Pivot Point one-month Resistance 2.
Initial support is at around $1,810, which is where the PP one-month R1, the PP one-day R3 and the Fibonacci 161.8% one-week all meet up on the gold price chart.
Update: Gold (XAU/USD) is easing from two-day highs of $1796, as sellers continue to lurk near the 100-DMA barrier of $1797. Despite the pullback, the price of gold remains buoyed by notable US dollar supply, as the risk sentiment rebounded on…
Go to the news source: Gold has broken above the $1,800 mark, hitting the highest levels since February