Gold Price Analysis: XAU/USD battle lines drawn ahead of stimulus talks – Confluence Detector

Former President Donald Trump's trial is over and while political commentators delve into the implications, for markets it only means that the Senate's agenda is now focused on one thing – stimulus. President Joe Biden is set to push through a covid relief bill worth as much as $1.9 trillion. Will that push gold higher or rather jolt US bond yields to fresh highs and weigh on the precious metal? 

In any case, XAU/USD is preparing for a new battle. Here are the levels to watch. 

The Technical Confluences Indicator is showing that gold is capped at around $1,821, which is the convergence of the Simple Moving Average 10-1h, the Bollinger Band 15min-Middle, the SMA 100-15m, the BB 1h-Middle, and many additional lines. 

Further above, the upside target is $1,842, which is a juncture of lines including the BB one-day Middle and the Fibonacci 23.6% one-month. 

Some support awaits at $1,804, which is the confluence of the previous month's low and the BB one-day Lower. 

XAU/USD may target $1,780, which is the meeting point of the Fibonacci 161.8% one-week and the PP one-month S1. 

XAU/USD resistance and support levels

Confluence Detector

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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