Will the Democrats enjoy a double victory in Georgia? That’s the question for gold investors. If President-elect Joe Biden’s party gains effective control of the Senate, it could push for an ambitious stimulus deal that would benefit the precious metal.
The latest opinion polls show a small advantage for the Democrats, but anything can happen.
How is XAU/USD positioned in the charts?
The indicator of technical confluences shows that gold is still struggling against the $1,947, which is the convergence of the R1 resistance of the monthly Pivot Point and the upper Bollinger band on the 1-hour chart.
Looking up, some resistance awaits at $1,959, which is the meeting point of the daily Pivot Point’s R1 resistance and the upper Bollinger Band on the 4-hour chart.
Above, the upward target is at $1,972, where the daily Pivot Point R2 resistance is located.
Strong support stands at $1,941, a dense group of technical lines that include the simple moving average of 50 periods on the 15-minute chart, the 10-hour moving average, and the average Bollinger Band on the 1-hour chart, Pivot Point resistance R3 weekly, and more.
Below, another line worth noting is $1,930, which is the confluence of 38.2% Fibonacci retracement on the daily chart and the 10-period moving average on the 4-hour chart.
XAU/USD resistors and supports
The Confluence Indicator finds interesting opportunities using technical confluences. It is a tool to locate and signal price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these points of congestion are is very useful for the investor, and can be used as a basis for different strategies.