As the fourth quarter of 2021 gets underway, the gold price is striving to retain its gains from Thursday. However, the $1750 level remains a great resistance level. The yellow metal is expected to finish the week virtually unchanged, as the ferocious recovery has provided some respite for the bulls, who are hoping to put an end to their three-week losing streak. The decline in US Treasury yields, which is occurring in the context of a risk-off market environment, helps to maintain the positive tone surrounding the gold price. Traders remain concerned with a postponement in the US political squabbling and Fed’s trimming threats, because of the increasing oil costs and weakening worldwide economic growth.
Gold Price Major Levels
The technical convergence sensor indicates that gold has recovered its composure and is poised to challenge significant resistance at $1765, which represents the confluence of the last day’s peak and a Fibonacci 38.2 percent one-month retracement of the price. To prepare for this, a thick cluster of strong levels of resistance in the vicinity of $1759 will be put into action. In the near term, gold buyers could aim for the Fibonacci 61.8 percent one-week retracement level of $1768, beyond which windows will open up to the $1772 significant resistance level.
Conversely, if the gold price begins to decline, sellers may attempt to target the $1752 key region. In this zone, the SMA10 one-day, Fib 23.6 percent one-week, and SMA50 four-hour moving averages all meet and conjunction. As long as the gold prices stay over $1748 per ounce, the rebound trend will most certainly continue to build. This occurs when the Fibonacci 38.2 percent one day corresponds with the Fib 23.6 percent one month in the Fibonacci sequence. Around $1742, the SMA5 one-day, SMA100 one-hour, and SMA10 four-hour demand zones meet. This is the last requirement zone to be identified.
A Practical Analysis
XAU/USD. Source: CHART Tradingview.com
Support for gold is found at $1,754, according to the Technical Confluences Analyzer, which is a collection of indicators that includes the Bollinger Band 15min-Middle, the Simple Moving Average 10-15m, the Fib 23.6 percent one-day, and many further lines of evidence.
It is around $1,748, where the relevant Fib 38.2 percent one-day as well as the Fib 23.6 percent one-month are located, that a more significant cushion is waiting to be found. Looking upward, there is some opposition at $1,764, which would be the point of intersection of the last daily bottom and the Fib 38.2 percent one-day extension. The very next goal is $1,771, which corresponds to the level at which the Bollinger Band one-day Mid and the Hinge Point one-day Resistance 1 cross paths, forming a confluence.