Gold Price Analysis: XAU/USD may unleash further upside on breaking $1,869 – Confluence Detector

Gold has kicked off the first full week of December with another jump to the upside. The main driver comes from Washington, where lawmakers are reportedly warming up to a new fiscal stimulus deal worth around $1 trillion. While gold bulls would probably like to see a package $2 trillion or more, anything achieved in the lame-duck session would be a boon. The latest disappointing jobs report has probably pushed Congress into more intensive work on a bill.

How is XAU/USD positioned on the technical graphs?

The Technical Confluences Indicator is showing that fierce resistance awaits at $1,869, which is the convergence of the Pivot Point one-week Resistance 1 and the Simple Moving Average 200-4h. 

The upside target for the precious metal is $1,879, which is where the all-important 50-day Simple Moving Average hits the price.

Some support awaits at $1,857, which is the meeting point of the previous 1h-high and the Pivot Point one-day Resistance 2. 

The most critical cushion is at $1,842, which is the confluence of the Fibonacci 38.2% one-month and the Fibonacci 61.8% one-day. 

XAU/USD resistances and supports

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.

Learn more about Technical Confluence