Technical Analysis: Gold clears five-month-old resistance line, eyes $1965
Having battled with 100-day SMA during the end of 2020, gold prices kick-start 2021 on a positive front while crossing a multi-day-old hurdle. Although overbought RSI conditions may challenge the bulls, the November high near $1,965 is in a hand’s reach due to the sustained trend line breakout. During the quote’s upside past-$1,965, the $2,000 threshold could lure the bullion buyers ahead of challenging 2020 top near $2,075. It should, however, be noted that a late-August high near $2,015 can offer an intermediate halt on the way to a multi-month high.
Should upside momentum fails to print a daily closing beyond $1,910 resistance-turned-support, gold sellers may seek chances of re-entry. Though, a 100-day SMA level of $1,895 will validate further downside. While extended weakness past-$1,895 may not refrain from challenging the mid-December low near $1,818, any further downside can target the November bottom surrounding $1,765. Overall, gold recently cleared a key upside hurdle and is up for a fresh north-run provided it manages to keep the breakout and crosses the immediate resistance.