From a technical perspective, the XAU/USD, for now, seems to have stalled its recent sharp pullback from an all-time peak touched last week near the 50% Fibonacci retracement level of the June-December rally. The said support is pegged near the $1,975 area and is followed by the 50-day Simple Moving Average (SMA), currently around the $1,967 region. Some follow-through selling might expose the very important 200-day SMA, near the $1,951 zone, below which the Gold price could slide to the $1,938-1,936 region, representing the 61.8% Fibo. level. The latter should act as a key pivotal point as a convincing break below might suggest that the commodity has topped out and shift the near-term bias in favour of bearish traders.
On the flip side, any meaningful recovery might now confront stiff resistance near the $2,000 psychological mark. A sustained strength beyond has the potential to lift the Gold price towards the $2,015 intermediate hurdle en route to the $2,029-2,030 supply zone. The next relevant barrier is pegged near the $2,045 region, which if cleared decisively will suggest that the corrective slide has run its course. The XAU/USD could then extend the momentum further towards the $2,070-2,071 area before aiming to reclaim the $2,100 round figure.
On the flip side, any meaningful recovery might now confront stiff resistance near the $2,000 psychological mark. A sustained strength beyond has the potential to lift the Gold price towards the $2,015 intermediate hurdle en route to the $2,029-2,030 supply zone. The next relevant barrier is pegged near the $2,045 region, which if cleared decisively will suggest that the corrective slide has run its course. The XAU/USD could then extend the momentum further towards the $2,070-2,071 area before aiming to reclaim the $2,100 round figure.