Bulls hold grip but hesitate above $2050
Gold keeps firm tone well above $2000 level, following last week’s spike to new marginally higher all-time high, though traders remain cautious and continue to collect profits on jumps above $2050.
The metal is supported by prospects of pause in Fed rate hikes as annual inflation in the US eased below expectations in April, contributing to the notion.
Growing uncertainty on recession fears, increased stress in banking sector and the latest turmoil over raising country’s $31.4 trillion debt ceiling, also contribute to increased safe-haven demand which offers solid ground for gold price for now, in addition to persisting geopolitical turbulence.
Positive daily technical studies (rising bullish momentum / ascending and thickening daily cloud continues to underpin) support the action, with strong bullish bias seen above $2000 level.
Uninterrupted series of higher lows and higher highs signal that bulls remain intact, with shallow dips expected to provide better buying opportunities.
Rising 10DMA ($2020) offers immediate support, followed by 20DMA ($2007) and psychological $2000 support, break of which would question bulls, but the action will remain biased higher as long as the price stays above a higher base at $1970 zone (also near Fibo 38.2% of $1804/$2080 upleg).
Only firm break here would put larger bulls on hold and risk deeper pullback.
Res: 2050; 2070; 2074; 2080
Sup: 2020; 2007; 2000; 1975