Gold regained traction after a $100 per ounce pullback from new record high last week and pressuring again psychological $2400 barrier.
Overall sentiment remains positive as geopolitical tensions and fears that the conflict in the Middle East can escalate, continue to fuel safe-haven demand and offset pressure on metal’s price from higher dollar.
Recent pullback, despite being sharp, was limited and contained by rising 10DMA (currently at $2351), keeping larger bulls intact.
On the other hand, overbought daily studies and RSI bearish divergence, continue to send warning signals, which should not be completely ignored and keep in play risk of deeper correction.
In such scenario, solid supports at $2300/$2283 (psychological / rising 20DMA) should keep the downside protected and mark a healthy correction before fresh push higher.
Break of the latest record high ($2431) to unmask next strong barrier at $2500.
Res: 2400; 2431; 2453; 2500.
Sup: 2374; 2351; 2320; 2300.
