Gold Appears Poised to Recover $2,050 Mark Amid Key U.S. Data
Gold prices are striving to reclaim the $2,050 level at the start of Tuesday, following a sharp $120 decline from the recent all-time high of $2,144 set during the Monday Asian trading session. Gold is seeking support from the recent weakness in the U.S. Dollar, coupled with the subdued yields of U.S. Treasury bonds.
Technical Overview:
Observing the daily chart, Gold maintains its upward trend as the 14-day Relative Strength Index (RSI) has retreated from overbought territory but remains above the midpoint. This suggests a potential for a renewed upward movement.
The Golden Cross, represented by the 50-day Simple Moving Average (SMA) crossing above the upward-trending 200-day SMA, adds further confidence to the potential for increased prices.
Closing above the $2,100 level on a daily basis is crucial to initiating a sustainable uptrend towards the all-time high of $2,144. Prior to that, Gold buyers need to establish acceptance above the psychological barrier of $2,050.
On the flip side, if the corrective decline persists, a robust support level is evident around $2,000, below which the 21-day SMA at $1,994 could act as a lifeline for Gold buyers. Furthermore, the round figure of $1,990 is poised to be a challenging level.
Technical Overview:
Observing the daily chart, Gold maintains its upward trend as the 14-day Relative Strength Index (RSI) has retreated from overbought territory but remains above the midpoint. This suggests a potential for a renewed upward movement.
The Golden Cross, represented by the 50-day Simple Moving Average (SMA) crossing above the upward-trending 200-day SMA, adds further confidence to the potential for increased prices.
Closing above the $2,100 level on a daily basis is crucial to initiating a sustainable uptrend towards the all-time high of $2,144. Prior to that, Gold buyers need to establish acceptance above the psychological barrier of $2,050.
On the flip side, if the corrective decline persists, a robust support level is evident around $2,000, below which the 21-day SMA at $1,994 could act as a lifeline for Gold buyers. Furthermore, the round figure of $1,990 is poised to be a challenging level.
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