Gold returns above $2000
Spot gold surged above $2000 level in early Tuesday’s trading, extending strong recovery from $1862 (12 Aug spike low).
The yellow metal was boosted by fresh weakness of the US dollar and Monday’s news that Warren Buffet’s Berkshire Hathaway buying a stake in major gold miner Barrick Gold Corp.
Today’s extension higher also broke above important Fibo barrier at $1993 (61.8% of $2074/$1862 pullback) that adds to signals that corrective phase might be over.
Daily techs show fresh bullish momentum and indicators in bullish setup that supports the advance, with close above $2000 needed to confirm.
Larger uptrend on strong safe-haven demand during and after coronavirus lockdown remains intact and was additionally boosted by recent break above psychological $2000 barrier.
The latest pullback on profit-taking offered better opportunities to re-enter bullish market for extension towards $2100 round-figure barrier and $2124 Fibo 123.6% projection.
But investors remain cautious on latest encouraging signals over global recovery process that may limit rally and keep metal’s price in extended consolidation.
Initial supports lay at $1988 (10DMA) and $1967 (20DMA), with $1920 (former record high of Sep 2011) remains key support and firm break here would signal deeper correction.
Res: 2015; 2024; 2029; 2049
Sup: 1988; 1980; 1967; 1929