Gold Price Analysis: $1,611 targeted after G7 coronavirus response fails to impress

Safe-haven gold has room to rise after the G7 countries failed to impress markets with a vague statement. The industrialized countries committed to help their economies but failed to announce any coordinated response. Stock markets have turned south and the precious metal has room to shine. 

The Technical Confluences Indicator is showing that the initial target for Gold is at $1,605, which is the convergence of the previous 4h-high and the Bollinger Band 1h-Upper. 

The next target is $1,611, where the previous daily high, the Fibonacci 38.2% one-week, and the Bollinger Band 4h-Middle meet up.

Support awaits at $1,601, and it is the confluence of the Fibonacci 38.2% one-month, the Simple Moving Average 10-15m, and the Bollinger Band 15min-Middle. 

The next cushion is at $1,593, which is where the Fibonacci 23.6% one-month, the BB 15min-Lower, and the previous 4h-low converge. 

Here is how it looks on the tool:

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.

This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.

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