Despite the recent pullback from a 19-month high, gold remains above a fortnight-long ascending support line to keep buyers hopeful. The bullish bias also gains support from an upward sloping RSI, not overbought. That said, the metal currently eyes 78.6% Fibonacci Expansion (FE) of late January-February moves, around $2,030. However, the metal’s further upside will be hindered by the $2,071-75 zone comprising the 100% FE and tops marked during August 2020. Should the gold bulls manage to cross the $2,075, a quick rally beyond $2,100 will be imminent.
On the contrary, a downside break of the aforementioned support line, near $1,978 at the latest, will have an additional filter to the south around $1,975, comprising February’s high. Following that, a five-week-old rising trend line and the 100-SMA, close to $1,935-30, will be a tough nut to crack for the gold bears. It’s worth noting, however, that a clear break of $1,930 will push back bullish hopes by directing the metal prices towards late February’s bottom around $1,878.
Overall, gold remains in a bullish trend and is well-set to refresh the previous record high.