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  • Gold reversed an early dip and turned positive for the third consecutive session.
  • Slightly overbought RSI on the daily chart warrants some caution for bullish traders.
  • Any meaningful dip towards the $1930 area might be seen as a buying opportunity.

Gold attracted some dip-buying near the $1941 region and jumped to fresh two-month tops during the early European session. The commodity was last seen hovering around the $1952-53 region, marking the 61.8% Fibonacci level of the $2075-$1764 downfall.

The emergence of some fresh selling around the US dollar was seen as one of the key factors that assisted the dollar-denominated commodity to regain traction. The precious metal has moved back into the positive territory for the third consecutive session.

Meanwhile, any subsequent positive move is likely to confront resistance near the $1960-65 congestion zone. Given that RSI on the daily chart is holding just above the 70.00 mark, the XAU/USD is more likely to take a brief pause near the mentioned barrier.

That said, some follow-through buying will be seen as a fresh trigger for bullish traders and set the stage for an extension of the recent bullish move. The yellow metal might then aim to reclaim the key $2000 psychological mark for the first time since August 2020.

On the flip side, immediate support is pegged near the $1930 level and is closely followed by the 50% Fibo. level near the $1920 area. Any further decline might be seen as a buying opportunity, which, in turn, should help limit the downside for the commodity.

XAU/USD daily chart


Technical levels to watch