Gold price recaptured the 23.6% Fibonacci Retracement (Fibo) level of the March advance, pegged at $1,963, on a daily closing basis on Tuesday. Holding above here is critical to see further gains, FXStreet’s Dhwani Mehta reports.
Awaiting a fresh catalyst
“Gold bulls have paused for a cause, awaiting a fresh catalyst to resume its upside, as the 14-day Relative Strength Index (RSI) is holding comfortably above the midline.”
“If the 23.6% Fibo resistance-turned-support holds the fort, Gold price could turn higher to challenge Monday’s high at $1,981. The next significant resistance for Gold buyers is seen at the $2,000 mark.”
“Alternatively, a breach of the abovementioned Fibo support will recall Gold sellers for a test of the $1,950 psychological level. Further south, $1,934, which is the 38.2% Fibo level of the same ascent, will challenge bullish commitments.”