Sat, Jun 10, 2023 @ 01:57 GMT
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Gold Struggles to Make a Return to Record Highs

Gold faced brutal selling on Friday after an exciting run towards a record high of 2,079, but it managed to end the week within the 2,000 territory.

Although the precious metal is trying to heal its wounds at the moment, the technical picture cannot warrant a proper rebound to the uncharted zone. On the one hand, the RSI and the MACD, although weaker, keep promoting the positive scenario as the former is fluctuating above its 50 neutral mark, and the latter is hovering above its red signal line. On the other hand, the price seems to have created a bearish evening star candlestick pattern around its new all-time high, increasing the odds of a downside reversal.

The 23.6% Fibonacci retracement of the March-May upleg is currently providing a footing under the price around 2,015. Should that base crack, the bears may push for a close below 2,000 and beneath the tentative ascending trendline drawn from the March lows. A steeper decline could take a halt within the key 1,980-1,976 area, which includes the 38.2% Fibonacci level and the support trendline from March 22. Another failure here could boost selling pressures towards the 50-day simple moving average (SMA) at 1,957 or lower to the 50% Fibonacci of 1,945.

On the upside, the bulls will need to climb back above the former resistance of 2,020 in order to prompt a bounce towards the 2,050 barrier. A decisive close higher could be a prerequisite for a rally to record highs. Note that the extension of the 2023 resistance line is currently around 2,082, while the 2,100 number could be of psychological importance.

In brief, gold is sending mixed signals, with traders likely awaiting a close above 2,050 or below 2000, to drive the market accordingly.
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