Gold, a stalwart in the market, shows resilience at the onset of the week but confronts recurring barriers in its upward trajectory.
On Friday, as the dollar weakened, gold experienced a notable uptick, reaching $2,320 initially. However, its ascent was abruptly halted by resistance encountered at the 200-hour moving average (depicted by the blue line), subsequently retracting to $2,280. Despite hovering around the weekly low, slightly above this mark, price stability has persisted over the past week, primarily within the vicinity of $2,300.
Currently, gold exhibits a modest rebound, climbing by 0.5% to $2,314. Nevertheless, its ascent remains impeded by resistance posed by the 200-hour moving average, currently situated at $2,317. Sellers continue to manifest near this crucial near-term threshold, curbing further upside potential for the time being.
The market enters the new week with a cautious demeanor, attributed to the precarious position of the dollar. Nevertheless, prospective gold buyers stand poised to capitalize on any breakthrough beyond the aforementioned near-term barrier. Such a development would herald a shift in near-term sentiment towards a more bullish outlook, with the notable target of $2,352, the high observed on April 26. However, until such a breakthrough materializes, prudent respect for the technical hold above is warranted.