Gold portrays the second consecutive monthly gain as it flirts with the $1,800 threshold in the last few days. Although the 50-week and 100-week moving averages have clutched the bulls of late, the price-positive signals from RSI and MACD join the mid-November’s clear breakout of the previous key resistance line from early March to suggest the metal’s further upside. Also adding strength to the bullish bias could be the quote’s rebound from the 50% Fibonacci retracement of the 2018-20 upside move. That said, an ascending trend line from early October, close to $1,850 by the press time, appears the key hurdle for the metal to cross to bolster the upside hopes. Following that, the mid-2022 peak surrounding $1,880 and the $1,900 round figure will be in focus. In a case where the bullion prices remain firmer past $1,900, the $2,000 psychological magnet and the yearly high near $2,075 should lure the buyers.
Meanwhile, pullback moves may initially aim for the 38.2% Fibonacci retracement level of $1,727 before ruling out the bullish bias by poking the yearly low marked in November, around $1,614. It’s worth noting that the resistance-turned-support line from March, close to $1,570, acts as the last defense of the bulls before giving control to the Gold sellers who could recall the year 2020 bottom surrounding $1,450 on the chart.
Overall, Gold is likely to end 2022 on a firmer footing that can offer a positive 2023 after two consecutive yearly losses, namely in 2021 and 2022.
