Should the precious metal overcome the $2,018 immediate barrier in the near term, a stronger rally could be expected
Gold stays bullish these days, refreshing cyclical highs above the $2,000 psychological level. Earlier, the metal regained the directionless 20-DMA that turned back into support. As such, the technical picture has improved again, with the bullion back above the $2,000 figure.
After last week’s brief dip to the $1,965 zone, the XAUUSD bounced back above the two key hurdles represented by the 20-DMA and the $2,000 mark, staying upbeat during the European hours on Tuesday as the dollar still struggles to attract demand.
The US dollar bounce slightly on Tuesday after finding support just above the 103.00 figure earlier in the day. As such, the greenback saw fresh late-August lows as the overall pressure continues to persist. As such, the USD index struggles to shrug this month’s selling pressure amid rising expectations for an earlier rate cut by the Fed. The DXY is oscillating around 103.20 in early European deals, looking modestly upbeat, with risk sentiment mixed in the global financial markets.
Should gold overcome the $2,018 immediate barrier in the near term, a stronger rally could be expected. If the pressure reemerges any time soon, the bullion could see another retreat in the days to come.
On the weekly timeframes, the bullion stays upbeat, trading in positive territory for the third week in a row. On the upside, the immediate significant target is now represented by the $2,020 region that has been capping the ascent this week.
After strong gains in October, the yellow metal is finishing this month in positive territory as well. Should the bullish momentum persist in the weeks to come, the XAUUSD pair may retarget the $2,050-2,060 zone for the first time since May.