Gold price is trading close to the highest levels in five weeks clocked at $1,816. The bright metal witnessed an influx of safe-haven flows after coronavirus cases globally jump nearly 50% from a month ago, hitting a pandemic record. Despite the recent upward trajectory, gold price is on track to book its first annual loss in three years. Meanwhile, weakness in the long-dated Treasury yields and the US dollar underpin the yellow metal amid the holiday season mood.
Gold Price: Key levels to watch
The Technical Confluences Detector shows that the gold price is breaking higher after finally scaling above the critical resistance at $1,814, which was the December month high.
The immediate upside, however, appears capped by $1,817, where the pivot point one-day R1 converges with the pivot point one-week R1.
Up next, the pivot point one-day R2 at $1,820 emerges as a roadblock towards the powerful hurdle at $1,828. That level is the intersection of the pivot point one-day R3 and pivot point one-week R2.
On the flip, the previous strong resistance-turned support around $1,811 will limit any pullback in gold price.
The Fibonacci 38.2% one-day, SMA10 four-hour and the previous week’s high coincide at that point.
If the downside pressure intensifies, then bears could aim for the confluence of the Fibonacci 38.2% one-month, Fibonacci 23.6% one-week and SMA5 one-day around $1,805
The line in the sand for gold buyers is seen at $1,801, the meeting point of the Fibonacci 38.2% one-week, SMA50 one-day and SMA100 one-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.