After a few sharp moves to the upside in the past couple of days, gold gained around 150 dollars. The commodity managed to recover more than half of its losses made in the first half of March. The big question here is, can it recover all of those losses and close month in the positive territory? From the technical side, there is a possibility of seeing that, as the precious metal managed to climb back above its medium-term upside support line drawn from the low of May 30th, 2019. Looking at our daily chart, we can see that gold is trading above all of its EMAs, which some investors could see as a positive sign. Even if we see a bit of correction to the downside, as long as the price stays above that upside line, we will remain positive over the near term.
A small decline below the 1611 hurdle again might bring gold closer to the aforementioned upside line, which if acts as a strong support area, may allow the bulls to take advantage of the lower price and send the commodity higher again. The precious metal might then drift to the 1611 obstacle again, or even the 1639 barrier, which is the current highest point of this week. If the buying doesn’t stop there, the next possible resistance area might be seen near the 1692 zone, marked by the high of March 6th. Slightly above it lies the current highest point of March, at 1703, which may also provide some additional resistance.
On the other hand, if the price slides back below the previously-mentioned upside line and falls below the 1543 hurdle, which is the high of March 18th, this could spook the bulls from the field again and invite more bears. Such a move might bring the commodity to the 1516 territory, which is the high of March 20th. Around there, gold could also test the 200-day EMA, which if holds, may help the precious metal to rebound slightly. However, if the price struggles to get back above the previously-discussed upside line, this might result in another round of selling, possibly bypassing the 1516 hurdle and aiming for the 1451 level, marked by the current lowest point of March.
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