Gold Price Analysis: XAU/USD eyes $1,947 ahead of critical Georgia elections – Confluence Detector

04 Jan 2021, 20:42 · Views 103

Gold has kicked off 2021 with a surge after President Donald Trump finally signed the $900 billion stimulus package in the last days of 2021. Will the precious metal receive another money-printing boost? That heavily depends on Democrats winning Georgia's runoff elections on Tuesday. That would enable President-elect Joe Biden to push through additional relief, potentially in the trillions.

How is XAU/USD positioned on the technical graphs?

The Technical Confluences Indicator is showing that gold faces resistance at $1,941, which is where the Pivot Point one-week Resistance 3 and the Bollinger Band 1h-Upper converge.

A substantial cap is at $1,947, which is where the Pivot Point one-month Resistance 1 hits the price.

Some support awaits at $1,925, which is the confluence of the Simple Moving Average 10-1h and the previous 4h-high.

Another cushion is at $1,921, which is a juncture including the PP one-week R2 and the BB 4h-Upper.

XAU/USD resistance and support levels

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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.

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