- Gold price is set for a positive close on the week amid broad-based US Dollar weakness.
- Federal Reserve’s dovish outlook, light trading to continue supporting Gold price.
- Gold price is poised for a hard battle heading into the US NFP week, $1,775 remains in sight.
Gold price is challenging bearish commitments near the $1,760 round figure, extending its upbeat momentum into the fourth straight trading day. The bright metal is on track to book weekly gains after a negative end a week ago. Broad-based US Dollar weakness remains the underlying catalyst behind the Gold price recovery, as the dovish Federal Reserve minutes offered additional legs to the ongoing correction in the greenback from over two-decade highs. Weak United States data also deepened the pain in the buck while traders preserved the weekly gains in Gold price amid the Thanksgiving week. The US Treasury yields also bore the brunt of the Fed officials agreeing on the need for smaller rate increments going forward. Attention now turns towards the US Nonfarm Payrolls (NFP) due for release in the week ahead, which is one of the most significant data watched out for before the December FOMC meeting.
Also read: Gold triple bottom leads prices higher
Gold Price: Key levels to watch
The Technical Confluence Detector shows that the gold price is looking to clear a powerful resistance at $1,757, the convergence of the Fibonacci 23.6% one-day and one-week.
The immediate upside remains capped by the previous day’s high at $1,759, where the SMA10 one-day also coincides.
The next significant topside barrier is placed at $1,762, which is the Fibonacci 38.2% one-week.
A sustained move above the latter will initiate a meaningful upside toward the pivot point one-day R3 at $1,769.
Further up, $1,775 will be a tough nut to crack for Gold bulls. At that level, the pivot point one-month R2 intersects with the Fibonacci 61.8% one-week.
On the flip side, the immediate support is pegged at the Fibonacci 61.8% one-day of $1,753, below which the previous week’s low at $1,749 will be put to test.
The next best downside bet for Gold bulls is the previous week’s low at $1,747, with the additional declines likely to test the pivot point one-day S3 at $1,741.
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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.