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Technical Analysis: Gold sellers aren’t invited beyond $1889

Although pullback from $1959 directs gold sellers to attack a confluence of 50-SMA and an ascending trend line from November 30, currently around $1,908, the yellow metal bulls keep the reins until the quote drops below a joint of 200-SMA and 61.8% Fibonacci retracement level near $1889. Ahead of that, multiple highs marked during late-November and December of 2020, around the $1900 threshold, can also challenge the downside momentum. Above all, the hopes of US stimulus and the ability to tame the coronavirus (COVID-19) backed by stronger vaccines also back the bullion buyers.

Meanwhile, $1930, the $1959 and November high near $1965 probe short-term upside of the yellow metal. It should, however, be noted that a clear run-up beyond $1965 will not hesitate to probe the $2000 psychological magnet. During the rise, highs marked in September around $1973 and $1992 can offer breathing spaces to the uptrend targeting the year 2020 peak near $2075.

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