• Gold price bides time before kick-starting the next move north.
• US inflation to trigger a fresh direction in gold price, $1840 in sight.
• Gold price turns bullish on falling bond yields, technical breakout.

Gold price has entered a phase of upside consolidation after hitting a wall of resistance at the critical $1,834 level. The dynamics in the Treasury yields and the US dollar continue to play out, with both rebounding ahead of the all-important US inflation data. Although, the Fed’s rate hike outlook likely hinges on the strength of the US labor market, the inflation figures could play a part in gauging the timing of the Fed rate increase.

Read: Gold Price Forecast: Will US inflation trigger a sustained move above $1,834 in XAU/USD?

Gold Price: Key levels to watch

The Technical Confluences Detector shows that the retreat in gold price is likely to meet strong demand around $1,819, which is the intersection of the previous day’s low and the previous week’s high.  

The next downside target is envisioned at the pivot point one-month R1 at $1,816. Further south, the previous month’s high of $1,814 will come to the rescue of gold’s bullish traders.

The confluence of the Fibonacci 161.8% one-day and pivot point one-day S3 at $1,809 will be the line in the sand for gold optimists.

Alternatively, a revival in the buying interest could see a retest of powerful resistance around $1,828, where the Fibonacci 38.2% one-day, Bollinger Band one-day Upper and SMA5 four-hour coincide.

Up next, the previous day’s high at $1,833 could be put to test once again, above which doors will open up towards $1838.

At that point, the pivot point one-week R1 converges with the pivot point one-day R1.

Here is how it looks on the tool

About 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 and 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.