Has gold regained its luster?
2023.05.03 05:25
Gold spiked back above 2,000 during Tuesday’s early US trading hours but it immediately faltered near the 2,020 level as the bulls got trapped below key trendlines ahead of the FOMC policy announcement.
The support-turned-resistance trendline drawn from March 22 and the longer-term upward-sloping line coming from November 29 have been keeping the bulls busy within the 2,020-2,025 region over the past couple of hours. Therefore, although the latest turnup in the price sent the RSI and the MACD into the bullish area, the precious metal will need to jump above that border to crawl up to the key 2,050 resistance zone. Slightly higher, the price will retest the record high of 2,070 before meeting the 2,100 psychological level.
Encouragingly, the 20-period simple moving average (SMA) is set to post a double bullish cross with the 50- and 200-period SMAs, increasing optimism for a positive trend continuation.
Nevertheless, if the price fails to close above 2,025, it may reverse lower to seek support within the 1,992-1,985 zone. This is where the simple moving averages (SMAs) on the four-hour chart and the tentative ascending trendline from March 8 are located. Should the bears breach that base, the sell-off may worsen towards the 1,950 area, while lower, some consolidation may emerge around 1,935.
In brief, gold’s latest pickup lost impetus near a key resistance zone, bringing some caution back into play. Buyers may stay patient until the yellow metal closes above 2,025.
