The Delta COVID-19 variant is wreaking havoc in the US and around the world. However, it may turn into a boon for gold bulls – as it impacts the plans of the almighty Federal Reserve. Officials at the world’s most powerful central bank are watching the virus developments with worry, and are set to delay withdrawal of stimulus.
The current printing of $120 billion per month is set to continue in full force in the next few months – and some of the funds go to gold. After XAU/USD surpassed the $1,800 level, how is it positioned on the charts?
The Technical Confluences Detector is showing that gold is facing resistance at $1,805, which is where the previous hourly high converges with the Bollinger Band 1h-Upper.
It is followed by $1,808, which is a stronger cap – it is the meeting point between the Fibonacci 38.2% one-month and the 100-day Simple Moving Average.
Further above, the next level to watch is $1,812, which is where the 200-day SMA hits the price.
Significant support awaits at $1,795, which is the confluence of the Pivot Point one-week Resistance 1 and the SMA 5-1h.
Another cushion is $1,792, which is where the Fibonacci 61.8% one-month hits the price.
XAU/USD resistance and support levels
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC 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. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.