Article by: ETO Markets
Powell's remarks and the loosening US labour market circumstances contributed to the gold price reaching a new all-time high, but it was only a grind higher. It remains to be seen, though, if the price of gold moves closer to $2,200. Following the recent surge, investors may decide to take profits ahead of Friday's crucial US NFP data release, which could validate the timing of the Fed rate cut as early as June.
The low of the previous day, $… , might provide immediate support for the gold price. The junction of Tuesday's low and the 23.6% Fibonacci Retracement level is $…, where the next negative cap is expected to occur.
A prolonged pause below that level would encourage gold sellers to tighten their grip in the direction of the $… barrier. The 20- and the 50-SMA Bull Cross are still in action, therefore any decline in the price of gold could be viewed as a favourable opportunity to purchase a dip.
For gold prices to continue rising toward the $… mark, they must consistently break through the current record high of $... Prior to that, bearish commitments could be tested by the $… resistance.
