Gold Price Forecast: XAU/USD bulls finally take out $1,814, what next? – Confluence Detector

Gold price rebounds to hit fresh five-week highs at $1,816.
Record covid cases globally boost gold’s safe-haven appeal.
Gold 2022 Outlook: Correlation with US T-bond yields to drive yellow metal.
Gold price clocked $1,816, trading close to its highest level in five weeks. The bright metal witnessed an influx of safe-haven flows after coronavirus cases globally jump nearly 50% from a month ago, hitting a pandemic record. Despite the recent upward trajectory, gold price is on track to book its first annual loss in three years. Meanwhile, weakness in the long-dated Treasury yields and the US dollar underpin the yellow metal amid the holiday season mood.

Read: Gold trading – Understanding the supply and demand for gold

Gold Price: Key levels to watch
The Technical Confluences Detector shows that the gold price is breaking higher after finally scaling above critical resistance at $1,814, which was the December month high.

The immediate upside, however, appears capped by the daily R1 pivot where it converges with the weekly R1 pivot point at $1,817.

Up next, the daily R2 pivot point at $1,820 emerges as a roadblock towards the powerful hurdle at $1,828. That level is the intersection of the daily R3 pivot point and the weekly R2 pivot point.
On the flip side, the previous strong resistance-turned support around $1,811 will limit any pullback in gold price.

The daily Fibonacci 38.2% level, 10 4-hour SMA and the previous week’s high coincide at that point.

If the downside pressure intensifies, then bears could aim for the confluence of the monthly Fibonacci 38.2%, weekly Fibonacci 23.6% and 5-day SMA at around $1,805

The line in the sand for gold buyers is seen at $1,801, the meeting point of the weekly Fibonacci 38.2%, 50-day SMA and 100 1-hour SMA.

Here is how it looks on the toolAbout 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 to 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.