Gold heads for 2,000 as bullish bias grows [Video]

Gold brought the 2,000 number back into scope after halting Friday’s setback near the former resistance of 1,959. 

The RSI and the MACD are currently heading northwards, endorsing the bullish appetite in the market. Of course, the Stochastics have already entered the overbought zone, suggesting that room for improvement is probably narrowing, though as long as they trend northwards, upside price movements are more likely than downside ones. The 20-day simple moving average (SMA) has recently avoided a bearish intersection with the 50-day SMA, sending bullish vibes as well.

Stretching beyond the crucial 2,000 level, which is also the 23.6% Fibonacci retracement of the 1,780 – 2,070 upleg, the bulls may push for a close above the all-time high of 2,079 from August 2020. If their efforts prove successful, traders may immediately target the 2,100 psychological mark, where any violation could activate fresh buying orders, likely up to the 161.8% Fibonacci retracement of the latest downfall at 2,183.

If the bulls run out of fuel around 2,000, the precious metal will probably pivot southwards to seek support near 1,959 again. Failure to bounce here this time could confirm a bearish extension towards the 50% Fibonacci of 1,924 and the 50-day SMA, while a break below 1,915 could stage a more aggressive sell-off towards the 1,890 – 1,870 zone. The latter would also downgrade the bullish outlook to neutral.

In brief, the yellow metal is expected to haunt more gains in the short term. A decisive close above 2,000 could boost the price towards the previous record high of 2,079. Otherwise, some consolidation may develop between 2,000 and 1,959.