Gold needs to break $1,980 support for short-term downside
Gold price grinds lower between a three-month-old ascending resistance line and an upward-sloping trend line from late March. That said, the quote recently bounced off a convergence of the 21-day EMA and an upward-sloping support line from March 22, close to $1,980, which in turn suggests the commodity’s further recovery towards the $2,020 immediate hurdle. However, nearly overbought RSI and nearness to the aforementioned multi-month-old resistance line, currently around $2,045, could challenge the XAUUSD bulls.
Meanwhile, a downside break of the $1,980 support confluence could quickly drag the Gold price toward February’s high of around $1,960. Following that, 50% and 61.8% Fibonacci retracement of its late November 2022 to early April 2023 upside, near $1,890 and $1,853 in that order, could test the Gold sellers. It’s worth noting that the XAUUSD remains on the buyer’s radar unless it offers a daily closing below the 200-day EMA level of around $1,845.
Overall, the Gold price is likely to grind higher unless breaking the $1,845 level. That said, a downside break of $1,980 can trigger the metal’s short-term fall.
