Gold has been gaining ground as Democrats seem to be on the verge of controlling the Senate after Georgia’s two runoff elections. Holding the upper chamber would allow President-elect Joe Biden to push for more stimulus, which is bullish for the precious metal. More fiscal spending joins monetary accommodation in boosting asset prices, including gold.
The networks called on race in favor of Democrat Raphael Warnock and fellow party member Jon Ossof is also nearing victory. While markets await the final tally from the Peach State, how is XAU/USD positioned on the charts?
The Technical Confluences Indicator is showing that the path of least resistance is to the upside. Gold has strong support at $1,946, which is the convergence of the Fibonacci 38.2% one-day, the Pivot Point one-month Resistance 1, and the Simple Moving Average 5-4h among others.
Another cushion awaits at $1,942, which is the meeting point of the PP one-week R3 and the Fibonacci 61.8% one-day.
Weak resistance is at $1,957, which is the confluence of the PP one-day R1 and the SMA 5-15m.
It is followed by $1,964, which is where the PP one-day R2 hits the price.
Further above, $1,976 is another minor hurdle, where traders find the P one-day R3.
XAU/USD resistance and support levels
Confluence Detector
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.
