Pivotal $2000 support under pressure again but holding for now
Gold price fell for the third straight day and tested psychological $2000 support, but dip was so far short-lived as price quickly bounced back.
The second strong rejection at $2000 points to strength of the support and also signals that the metal’s price remains underpinned by the turmoil over US debt ceiling and persisting fears that crisis in the US banking sector may deepen, following fresh negative news..
Gold’s bullish stance is reinforced by growing expectations that the US Federal Reserve is likely to pause its tightening cycle and may also start cutting interest rates towards the end of the year.
Near-term action spiked to new all-time high last week but lacked strength to sustain gains above $2050, remaining in extended consolidation within the range of nearly hundred pips, but expected to keep bullish bias above $2000 level.
Bullishly aligned daily studies support the action, though loss of $2000 handle would weaken near-term structure and risk test of key support at $1975 (higher base / Fibo 38.2% of $1804/$2080 rally / weekly Tenkan-sen).
Long upper shadows of weekly candle of this and last week warn of strong offers and keep in play risk of potential deeper pullback, which could be sparked by sustained break of $1975 pivot.
Res: 2022; 2041; 2050; 2070
Sup: 2000; 1975; 1958; 1942