Gold price climbs and reclaims the $2,000 after traveling towards weekly lows on Wednesday at $1,969.34, though economic data from the United States (US) bolstered the yellow-metal. In addition, US bond yields are falling, weakening the US Dollar (USD). At the time of typing, the XAU/USD is trading at $2,006.91, above its opening price by 0.61%.

The overnight breakdown through the $1,980 horizontal support was seen as a fresh trigger for bearish traders. That said, the lack of follow-through selling and the subsequent recovery warrant caution before positioning for any further depreciating move. Meanwhile, any further move up might now confront resistance near the $2,012-$2,015 zone. After dipping below the 20-day Exponential Moving Average (EMA) at $1,988.60, the XAU/USD resumed its uptrend, though downside risks remain. Of note, after peaking at $2,048.79, XAU/USD’s tumbled, and since April 17, the Gold price remains trading within the $1,980-$2,015 range, unable to decisively break below/above the boundaries of that area, meaning a daily close is pending below $1,980 or above $2,015. On the downside, the XAU/USD’s road is busy with immediate resistance with the $2,000 psychological level, followed by the 20-day EMA, and then the weekly low of $1,969.34. Conversely, the XAU/USD will meet resistance at $2,015, which, once cleared, it could pave the way toward the YTD high at $2,048.79. Given that oscillators on the daily chart have just started drifting in the negative territory, some follow-through selling should pave the way for an extension of the recent retracement slide from a one-year high. The Gold price might then slide towards testing the next relevant support near the $1,956-$1,955 area before eventually dropping to the monthly low around the $1,950 region.

Completion of expanding flat on daily

Apr 20 2023