Gold faced a significant setback on Wednesday after breaking through the technical support range of $2,050-$2,045. Should gold linger below this threshold, sellers might gather momentum to drive prices towards the 50-day simple moving average around $2,010. Further weakness could pivot towards $1,990, followed by $1,975.
In a scenario where sentiment favors buyers and XAU/USD initiates an upward trend, resistance will emerge around $2,045-$2,050. Surpassing this hurdle may pose a challenge for the bulls, but a successful breakthrough could pave the way for retesting the late December highs. Further strength could redirect focus towards the near all-time high around $2,150.
Gold's recent movement indicates a delicate balance between buyer and seller sentiments, with key levels playing pivotal roles in determining the next directional move. Crossing resistance barriers will be crucial for renewed bullish momentum, while sustained weakness could reinforce the downward trend.
In a scenario where sentiment favors buyers and XAU/USD initiates an upward trend, resistance will emerge around $2,045-$2,050. Surpassing this hurdle may pose a challenge for the bulls, but a successful breakthrough could pave the way for retesting the late December highs. Further strength could redirect focus towards the near all-time high around $2,150.
Gold's recent movement indicates a delicate balance between buyer and seller sentiments, with key levels playing pivotal roles in determining the next directional move. Crossing resistance barriers will be crucial for renewed bullish momentum, while sustained weakness could reinforce the downward trend.
