Technical Analysis: Gold might encounter strong resistance near the $2,078 region. Overnight failure near the all-time high closing levels around $2,077-2,078 raises caution among upward trend traders. Breaking this barrier decisively could pave the way for a push towards the psychological $2,100 mark. Daily chart oscillators remain comfortably positive, hinting at potential buy-dips around lower levels.
The overnight low, around $2,055, appears to defend against immediate declines towards the $2,040 horizontal zone. A convincing break below this level might accelerate further downside movement towards the intermediate support around $2,020, aiming for the 50-day Simple Moving Average (SMA) near $2,008-2,007 and the psychological level of $2,000. Further selling activity could indicate convergence around $1,960, encompassing the 100 and 200-day SMAs.
The overnight low, around $2,055, appears to defend against immediate declines towards the $2,040 horizontal zone. A convincing break below this level might accelerate further downside movement towards the intermediate support around $2,020, aiming for the 50-day Simple Moving Average (SMA) near $2,008-2,007 and the psychological level of $2,000. Further selling activity could indicate convergence around $1,960, encompassing the 100 and 200-day SMAs.
