The key levels to watch, gold is testing the $1875 area, the 50% of the pullback from last year’s record highs; this area also marks the minor highs from late January, providing a confluence of resistance levels and increasing the odds of a potential pullback in the latter half of this week.
The medium-term momentum has clearly shifted back in favor of the bulls, with the 20-day providing support and the 200-day turning higher for the first time in months. A confirmed break of $1875, if seen, could open the door for a continuation toward the next level of previous resistance at $1960 or key psychological resistance at $2000. Only a break below the bottom of the and the 200-day in the $1800 area would erase the near-term bias.
The expected trading range for today is between 1858.00 support and 1895.00 resistance.