spot gold price forecast 2021 : Gold bulls take a breather after the 2% recovery rally witnessed on Tuesday. The haven demand for the US dollar has returned amid a cautious market mood, as investors await the House of Representatives vote on the Senate’s $1.9 trillion stimulus bill this Wednesday.
Spot Gold Price Forecast Target Price
The US Treasury yields keep its pullback from 13-month highs intact, underpinning the sentiment around the non-yielding gold. Ahead of the stimulus vote, the US CPI data will hog the limelight and have a significant impact on gold.
Let’s take a look at the key technical levels for trading gold in the day ahead.
Spot Gold resistance key and support levels
The Technical Confluences Detector shows that gold needs to clear powerful resistance around $1717/ $1720 to unleash additional recovery gains.
The level is the intersection of the previous month low, previous high four-hour and SMA50 four-hour.
Further up, the SMA10 one-day at $1725 would probe the buyers. The next resistance awaits at $1732; the convergence of the Fibonacci 61.8% one-week and pivot point one-day R1.
The pivot point one-week R1 at $1743 will be the next upside target for the gold bulls.
Alternatively, gold strong support is aligned at $1699, which is the confluence of the Fibonacci 38.2% one-day, Fibonacci 23.6% one-week and SMA100 15-minutes.
The previous week low at $1686 will be back on the sellers’ radars.
The previous day low at $1680 could come to the bull’s rescue, below which the pivot point one-month S1 at $1673 would offer the last line of defense.
About Technical Confluences Detector
Also Read Gold Price Forecast : Gold MCX Research Report March 2021
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. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.