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MTrading Team • 2023-11-16

Gold price recovery appears elusive below $1,975

Gold price recovery appears elusive below $1,975

Gold price braces for the first weekly gain in three while defending the week-start rebound despite the previous day’s retreat from a convergence of the 100-SMA and a two-week-long falling resistance line, currently around $1,973-75 by the press time. It’s worth noting that a one-month-old horizontal area joins upbeat RSI (14) and bullish MACD signals to keep the XAUUSD buyers hopeful of crossing the aforementioned resistance confluence. Following that, the metal’s run-up to the $2,000 psychological magnet and then to the previous monthly high of around $2,010 will be imminent. However, the yearly high marked in May around $2,067 and the previous year’s peak of near $2,071 could challenge the bullion buyers afterward.

Meanwhile, a horizontal area comprising levels marked since early October joins the 200-SMA to highlight $1,931-30 as a short-term key challenge for the Gold sellers. In a case where the precious metal drops below $1,930, the 50% Fibonacci retracement of its October-November upside, close to $1,910, will precede the $1,900 round figure to act as the final defense of the buyers. It’s worth noting that 61.8% and 78.6% Fibonacci ratios, respectively near $1,885 and $1,850 could test the XAUUSD bears past $1,900 and before October’s bottom of $1,810.

Overall, the Gold price appears in recovery mode but the upside needs validation from $1,975 and the US data.

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