The price of Gold is currently consolidating its correction from three-week highs, reaching $1,933 on Tuesday. Selling pressure remains strong below the important 100-Daily Moving Average (DMA) at $1,923.
There is immediate support at yesterday's low of $1,908. If this level is breached, the round figure and relatively stable 50 DMA at $1,900 will be tested.
Should the 50 DMA fail to hold up, there is a possibility that the Gold price retracement could extend towards the 21 DMA at $1,880.
Despite this potential retracement, buyers are likely to show interest in Gold as indicated by the comfortably above midline reading of the 14-day Relative Strength Index (RSI).
As long as the significant support level of $1,900 holds firm, there is bullish potential for Gold to reach and surpass key resistance levels such as the 200 DMA at $1,930.
Prior to challenging these higher resistance levels though,the bearish commitments will have to face off againstthe obstacle presented bythe100 DMAat1923.FurtherupwardmovementmayseetheGoldpriceretestingthethree-weekhighof1933onitswaytothemaximumreachedonSeptember20,$1947.