Recovery leg from $1984 (9-week low of Feb 14) extends into third straight day after short-lived probe below psychological $2000 level was contained by 100DMA and Morning Doji Star reversal pattern formed on daily chart.
Although the metal’s price gained pace and established above $2000, caution is still required as 14-d momentum is still in negative territory and a cluster of converged daily moving averages (20/30/55), just above the price (at $2024/30 zone), marks significant obstacle.
Gold price regained ground despite warning of sticky inflation (Friday’s higher than expected PPI numbers further worsened overall picture) and signals of prolonged period of unchanged interest rates, as investors remain optimistic and believe that this is a temporary phenomenon and inflation remains in a steady downward trajectory.
Recovery needs a sustained break above $2030 zone to confirm reversal signal and open way for $2050+ acceleration.
Today’s close above $2015 (cracked Fibo 38.2% of $2065/$1984 bear-leg) to further firm near-term structure, while bulls will be sidelined if the price returns below $2000 level.
Res: 2024; 2030; 2034; 2046.
Sup: 2010; 2000; 1992; 1984.
