- Xau/Usd forecast: In the face of rising Treasury yields, the price of gold is projected to drop for a second consecutive week.
- On the back of aggressive Fed rate rise wagers and risk aversion, the US dollar returns to the fray.
- The price of XAU/USD continues to move in a downward direction, with $1,607 as the target.
As we enter a new week, the price of gold is testing bullish commitments near the 2022 lows and moving toward the $1,600 mark.
Prior to its decision to raise interest rates on November 2, the Fed entered the blackout period. The unexpected decline in US Jobless Claims statistics and recent remarks by Fed policymakers thus had a big impact on the optimistic Fed rate hike predictions.
Following that, the US Treasury yields skyrocketed, pushing the currency up alongside it and trashing the gold.
Dollar bulls are also gaining from the parabolic surge in the USD/JPY pair caused by policy divergence.
Because of rising borrowing rates, the price of bullion is set to decrease for a second straight week. All eyes are now focused on a brand-new set of elite US economic data scheduled for release in the next week.
Key Levels: Gold Price
Despite the fresh increase, the Technical Confluence Detector indicates that the gold price is likely to find support below the day’s low of $1,623.
Before attempting to assault the $1,615 bottom from last month, buyers may find refuge at the pivot point one-day S1 at $1,618.
The pivot point one-month S1 at $1,607 will serve as the key cap if the latter is broken below for an extended period of time. Prior to that, a temporary support level may be seen at the pivot point one-day S2 at $1,609.
Alternatively, for the price of gold to rebound, it must gain support above the Fibonacci 23.6% one-day and SMA5 four-hour levels at $1,628.
The Fibonacci 38.2% one day at $1,632 is where the next significant barrier is visible.
For XAU purchasers, the Fibonacci 61.8% one-day at $1,637 would be a difficult barrier to overcome further up.
Technical Confluences Detector:
The TCD (Technical Confluences Detector) is a tool used to find and highlight price levels where a confluence of indicators, moving averages, Fibonacci levels, pivot points, etc. is present.
Short-term traders will look for entry points for counter-trend strategies and seek a few points at once.
This tool will enable you to anticipate 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.