Gold has tumbled down below $1,800 after surviving above that line for several days. While the precious metal suffered a precipitous fall – probably unrelated to rumors that the head of Iran’s program Mohsen Fakhrizadeh has been assassinated – it is still holding above critical support.
The broader downtrend stems from vaccine news that dominated headlines in November. With hope in sight, policymakers may refrain from implementing new stimulus measures.
How is XAU/USD positioned on the charts?
The Technical Confluences Indicator is showing that gold is holding above critical support at $1,775, which is the meeting point of the previous 1h-low and the Pivot Point one-month Support 3.
Below that line, there is no cushion at least until $1,754.
Some resistance is at $1,790, which is where the Bollinger Band 1h-Lower and the Pivot Point one-day S3 hit the price.
A more significant cap awaits at $1,798, which is a juncture of lines including the PP one-day S2, the BB one-day Lower, and the all-important 200-day Simple Moving Average.
Key XAU/USD resistances and supports
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.