Gold finds its way back to the $2000 support zone

Gold price recovers some lost ground below the mid-$2,000s during the early Asian session on Tuesday. The possibility that the US Federal Reserve (Fed) might extend its restrictive stance for longer might exert some selling pressure on the yellow metal in the near term.

The daily chart for XAUUSD shows that the risk skews to the downside. The bright metal trades below a flat 20 Simple Moving Average (SMA) while the 100 and 200 SMAs converge around $1,962 with modest upward strength. The Momentum indicator turned flat and consolidates around its 100 level, while the Relative Strength Index (RSI) indicator offers a bearish slope at 49, anticipating another leg lower without confirming it.

The 4-hour chart shows technical indicators bounced from their recent lows but remain within negative levels, limiting the odds for a firmer recovery. At the same time, XAU/USD battles with a directionless 200 SMA while the 20 SMA heads south above the current level, providing dynamic resistance around the $2,040 level.

Support levels: 2,016.60 1,998.65 1,987.20

Resistance levels: 2,040.20 2,052.30 2,065.45

🌐 XAUUSD PLAN 01/09

🔴SELL Price range 2048$ - 2050$. Stoploss: 2055$
(Region to note: 2043$ - 2045$)
🟢Buy Price range 2002$ - 2000$. Stoploss: 1995$
(Region to note: 1990$ - 1992$)

Note: Full TP, SL to be safe and win the market ‼️