Gold is consolidating under $2000, bulls hold grip for now
Gold is consolidating under new five-month high on Monday after larger steep uptrend stalled on approach to psychological $2000 barrier.
Strong upside rejection on Friday points to increased headwinds from $2000 zone which marks significant obstacle, prompting traders to collect some profits from over 7% rally in past two weeks.
Overstretched daily indicators also contribute to current pause, though the pullback was so far shallow and signaling that bulls hold grip for renewed probe above $2000.
Unrest in the Middle East prompted traders into safety, with threats that conflict may escalate, boosting demand for safe-haven bullion and continuing to inflate the price.
Pullback so far found a footstep above rising 5DMA ($1960), with extended dips expected to stay above $1945 (broken 50% retracement of $2080/$1810), to mark a healthy correction and keep larger bulls intact.
Res: 1982; 1997; 2000; 2016
Sup: 1960; 1945; 1931; 1926
