Despite reversing from an eight-month high, gold prices recently crossed the stated key resistance, also rallied beyond June 2021 peak. Additionally, favoring gold buyers is the metal’s ability to stay above the previous double-tops, as well as a three-week-old support line, amid bullish MACD signals. However, the RSI pullback from the overbought territory may test the immediate rising trend line near $1,866, a break of which will highlight the $1879-77 region as the short-term buyer’s last defense. In a case where gold prices drop below $1,877, January’s peak of $1,853 will return to the chart but a convergence of the 100 and 200-DMA near $1,810 will be a tough nut to crack for the sellers afterward.
Alternatively, tops marked in January 2021 and November 2020, respectively around $1,960 and $1,965, can lure the gold buyers before directing them to the $2,000 psychological magnet.
Fundamentally, fears of an imminent war between Russia and Ukraine join inflation woes to keep supporting the gold bulls. Though, firmer US Q4 GDP, second estimate, will propel 0.50% Fed-rate-hike concerns, which in turn can trigger short-term pullback of the precious metal.
