The price of gold is once again approaching the $2000 mark. The relative strength index (RSI) on the daily chart has dropped from overbought territory, suggesting the emergence of some buying opportunities around the Gold price. Therefore, any further decline is likely to find support near the key resistance-turned-support level of $1986-1985.
However, a convincing breakout could trigger some technical selling and push XAU/USD further towards the intermediate support level of $1964 on the way to last week's low around the $1954-1953 area.
On the other hand, the round number of $2000, followed by the recent high around $2005, seems to be acting as an immediate barrier. A sustained strength above it would pave the way for an extended uptrend, pushing Gold prices towards the next relevant resistance area near $2022.
However, a convincing breakout could trigger some technical selling and push XAU/USD further towards the intermediate support level of $1964 on the way to last week's low around the $1954-1953 area.
On the other hand, the round number of $2000, followed by the recent high around $2005, seems to be acting as an immediate barrier. A sustained strength above it would pave the way for an extended uptrend, pushing Gold prices towards the next relevant resistance area near $2022.
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Comment:
While this precious metal is supported by political instability, it is weighed down by the hawkish monetary policy stance of the Fed. This could potentially lead to a decline in gold towards the support level around 1945 - 1950 USD.
