Market news
24.03.2023, 03:57

Gold Price Forecast: XAU/USD eyes above $2,000 as central banks favor rate hike pause – Confluence Detector

  • Gold price is aiming to settle above $2,000 on a daily and weekly basis for the first time since March.
  • Overall weak USD to the banking crisis and consideration of policy-tightening termination by central banks has supported Gold bulls.
  • The only catalyst barricading the Gold rally is the recovery move by the USD Index.

Gold price (XAU/USD) is eyeing a weekly settlement above the psychological resistance of $2,000.00. The precious metal is likely to attempt a close above $2,000.00 for the third time on a daily basis this week as strength in the yellow metal is backed by multiple factors. From the overall weak US Dollar Index (DXY) to the potential banking crisis, and consideration of policy-tightening termination from the Federal Reserve (Fed), the Bank of England (BoE), and the Reserve Bank of Australia (RBA), all economic indicators are fueling strength in the Gold bulls.

S&P500 futures are trying to settle their feet after a few volatile sessions as US Treasury Secretary Janet Yellen has stated that the government is ‘prepared for additional deposits actions if warranted’. Widening insurance blanket for deposits has infused some confidence among market participants. The attempted recovery by the US Dollar Index (DXY) is the only factor, which is barricading the Gold price from the continuation of its upside journey.

Meanwhile, US Treasury yields have been battered after signals of pausing the rate-hike cycle by the Federal Reserve (Fed). Softer US treasury yields have improved the appeal for Gold as safe-haven.

Gold Price: Key levels to watch

The Technical Confluence Detector is demonstrating that Gold bulls are defending the critical support at $1,990.00 where the previous week's high and daily 38.2% Fibonacci retracement coincides.

A decisive move above $2,005.04, where the daily high and upper Bollinger Band (4H) coincides, would strengthen Gold bulls further, which will drive them toward Monthly second resistance pivot at $2020.

In an alternate scenario, the downside will be triggered if the Gold price skids below $1,960.00, which is the confluence of the previous month's high and weekly 23.6% Fibonacci retracement. A confident move below the aforementioned support would drag it towards $1,950.00, which is daily Support 2 gauged by the Pivot table.

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.

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location