Gold extends recovery towards $2000 barrier
Gold rose to ten-day high on Friday and almost fully retraced last week’s 2.7% drop, driven by growing demand on hopes that the Fed’s tightening cycle is close to its end.
Fresh extension on Friday cracked Fibo barrier at $1991 (76.4% of $2009/$1931), confirming bullish signal generated on close above 20DMA ($1974) and signaling that corrective phase from $2009 (Oct 27 peak) is likely over.
Bulls eye psychological $2000 barrier, where increased headwinds could be expected as daily studies are overbought, with limited dips to ideally find firm ground above $1980 zone (broken Dibo 61.8%) and offer better levels to re-enter bullish market for another probe through $2000.
Only return and close below 20DMA would weaken near-term structure and signal recovery stall.
Res: 2000; 2004; 2009; 2021
Sup: 1987; 1979; 1974; 1970