Gold prices, riding on a previous upward momentum, tested an eight-day high near $1,990 USD. The pause in the Federal Reserve's tapering bets weakened the yields on US Treasury bonds, resulting in a significant surge in gold prices. Breaking through the 21-day Simple Moving Average (SMA) at $1,974 USD, gold closed above this level on Thursday, boosting buyer confidence.
if gold sellers enter the market, the initial support is adjusted to the 21-day SMA at $1,974 USD, with a more substantial decline toward $1,960 not ruled out.
Gold prices may potentially test the psychological support level of $1,950 USD, extending the downward momentum.
The 14-day Relative Strength Index (RSI) comfortably sits above the midpoint, supporting the upward trend.
The next resistance barrier is observed at the declining trendline resistance around $1,992 USD, close to the November 6th high of $1,993 USD. Acceptance above this level will likely propel gold buyers to challenge the $2,000 USD mark.
Furthermore, the static resistance zone around $1,905-$1,910 will face a test.