Spot Gold Daily Analysis
At present, the short-term oscillators are indicating a possible weakening of positive momentum in the gold market, although buyers still seem to have control. The RSI is indicating a downward trend, though it is still above the 50-neutral mark, while the stochastic oscillator is retreating after indicating a bearish cross in the overbought zone.
In case the bullish pressure subsides and the price of gold moves downward, the February resistance area of 1,959 could serve as the initial support. Should the price drop below this zone, gold could further decline and test the 1,933 level, before encountering the 1,885 hurdle. If this barricade fails, the 2023 low of 1,804 may provide some downside protection.
On the other hand, if gold continues to attract buying interest, the bulls could attempt to reclaim the psychological mark of 2,000. If this level is broken, it could pave the way for the one-year high of 2,032. Further advances could be halted by the March 2022 high of 2,070, which was recorded after Russia’s invasion of Ukraine.
Overall, gold has been experiencing a downside correction in the past few daily sessions, implying that its recent gains may have been overextended. If the psychological level of 2,000 proves to be a strong resistance, this could result in a continued pullback in the market.
