Gold, in an upward trajectory since October 10, has been regaining significant technical levels like the 200-day simple moving average (SMA) and the psychological threshold of 2,000. It recently reached a new five-month peak at 2,009. However, a minor pullback has occurred, likely driven by overbought conditions.
In the event of a further correction, gold may find support around the July resistance level at 1,987, which could now act as a pivotal point. Breaking through this level, the price could potentially decline towards the October support at 1,954. Deeper declines might find stabilization at the June hurdle of 1,932, which coincides with the 200-day SMA.
On the other hand, if buying interest continues and gold surpasses the 2,000 psychological barrier, it might face initial resistance at the recently achieved five-month high of 2,009. A breach beyond this point could open the door to a test of the April resistance at 2,032. Overcoming this region, the bullion may then challenge the April-May resistance zone around 2,049.
In summary, gold appears to be subject to persistent upward pressure, leading to a string of consecutive multi-month highs. While short-term indicators suggest a potential overextension, the latest rally could gain additional momentum from evolving geopolitical concerns.
