- Gold rebounds strongly from 2-month bottom
- Price breaks above 50- and 200-period SMAs
- Oscillators tilt to the positive side
Gold had been trading within a range in the four-hour chart, but a hotter-than-expected US inflation report triggered a downward spike to a fresh two-month low of 1,984. However, bullion managed to post a swift recovery, jumping above both 50- and 200-period simple moving averages (SMAs) before encountering strong resistance at 2,030.
For the rebound to resume, the bulls need to conquer 2,030, which is the 50.0% Fibonacci retracement of the 1,973-2,086 upleg. Surpassing that area, the price may ascend towards the 38.2% Fibo of 2,044. Further advances could then cease at the 23.6% Fibo of 2,060, a region that held strong three times in January.
On the flipside, should gold reverse back below its 200-period SMA, immediate support could be met at the 61.8% Fibo of 2,017, which has prevented retreats multiple times throughout January. Lower, the 78.6% Fibo of 1,997 could prove to be a tough barrier for the bears to overcome. Failing to halt there, the price may challenge the recent two-month low of 1,984.
In brief, gold has been regaining lost ground after finding its feet at a fresh two-month low. However, its repeated failure to claim the 2,030 mark could result in another round of weakness.
