Gold is feeling the pull of gravity on the first trading day of 2022, in what seems to be a correction from six-week highs of $1,832. Expectations that the upcoming US first-tier economic events, including the ISM PMIs and Nonfarm payrolls, will confirm a March Fed rate hike are keeping the bulls on the back foot. Additionally, the upbeat market mood is collaborating with the pullback in gold price.
Read: Gold Price Forecast: XAU/USD is down starting out 2022 but not out
Gold Price: Key levels to watch
The Technical Confluences Detector shows that the gold price is trading below strong resistance of $1,827, where the Fibonacci 23.6% one-day coincides with the previous high four-hour and SMA10 one-hour.
The next topside hurdle is seen at the previous day’s high of $1,830, above which the multi-week top of $1,832 will be challenged once again.
The pivot point one-day R1 at $1,835 will be a tough nut to crack for gold bulls.
On the flip side, strong support is pegged at $1,821, the intersection of the Fibonacci 61.8% one-day, Fibonacci 23.6% one-week and previous low four-hour.
The next relevant cap is seen at 1,818, which is the pivot point one-day S1. Friday’s low of $1,815 will be next on sellers’ radars.
The convergence of the SMA100 one-hour and Fibonacci 23.6% one-month at $1,812 will be the line in the sand for gold buyers.
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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.