Gold Price Forecast: The Technical Confluence Detector shows that Gold Price is testing bids at $1,840, where the SMA10 one-day coincides with the Fibonacci 61.8% one-week.
If that latter caves in, then a dense cluster of healthy support levels is stacked up around $1,842, the confluence of the SMA200 one-day, SMA50 four-hour and Fibonacci 38.2% one-day.
Volatile Week in Gold
A volatile week in gold has seen it break through the bottom of the recent range only to recover a little around $1,800. A stronger dollar remains a major headwind for the yellow metal and in these conditions, it’s hard to imagine it falling out of favour. Yields are continuing to rise and central banks are hiking aggressively in a desperate attempt to rein in inflation. It doesn’t bode well for gold even in these risk-averse markets.
- Gold Price remains at the mercy of the USD and Treasury yields.
- Risk sentiment and end of the week flows could also affect gold.
- The path of least resistance appears to the upside for the bright metal.
Gold Price holds above the 200-day SMA at $1,836. The yellow metal is unlikely to come under downside pressure as long as trades above this level