fxstreet.com 09 Feb, 2021 08:45 am

XAU/USD eyes $1864 upside target amid US stimulus hopes – Confluence Detector

XAU/USD eyes $1864 upside target amid US stimulus hopes – Confluence Detector
Gold (XAU/USD) extends a three-day winning streak on Tuesday, looking to regain the $1850 level. The road to recovery from two-month troughs picks up

8% one-week, SMA5 one-hour and previous day high.Powerful support at $1808 (previous day low) is the level to beat for the XAU bears.Growing optimism on the stimulus is pushing the US inflation expectations, underpinning the inflation-hedge gold.However, rising longer-term inflation expectations also drive the Treasury yields higher, posing a risk to the rally in gold.

The Technical Confluences Indicator shows that gold is looking to find acceptance above the critical resistance at $1844, which is the confluence of the previous high four-hour, SMA100 four-hour and Fibonacci 23.Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.

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