Gold remains constructive and probing again through $2000 level on Thursday, lifted by fresh risk aversion on renewed US banking system stress.
Fresh action by the US House of Representatives to raise the government’s $31.4 trillion debt ceiling, aims to help banking sector, as government is so far unlikely to intervene in rescue of First Republic Bank, which was the latest addition to the list of the US banks in troubles.
Growing uncertainty sparked risk aversion and boosted demand for safe-haven gold, brightening its near-term outlook.
Sustained break above $2000 barrier (psychological / Fibo 38.2% of $2048/$1969) after repeated failures in past two days, would generate fresh bullish signal and make renewed bulls more comfortable, as daily studies are still mixed (north-heading 14-d momentum is still in the negative territory).
This will open way for extension a gradual ascend in past four days towards pivotal barriers at $2015/18 (lower platform / Fibo 61.8%) break of which would signal an end of corrective phase ($2048/$1969) and unmask key resistances at $2032/48 (Apr 5/13 tops).
Caution on repeated failure to clearly break $2000 barrier which would still keep the downside vulnerable.
Res: 2009; 2015; 2018; 2032.
Sup: 1988; 1983; 1976; 1969.