Gold (XAU/USD) surpassed the psychological level of $2,000 on Friday, reaching its highest point since May 16 and marking its third consecutive weekly gain. Escalation in the Israel-Hamas conflict continues to drive safe-haven buying activity, acting as a favorable tailwind for the precious metal. With Bullish momentum still in play, Gold has witnessed a remarkable recovery, crossing the significant $2,000 threshold on Friday and is currently defending this level.
The 14-day Relative Strength Index (RSI) is hovering just above the overbought zone, indicating a stronger upward trend ahead.
The 21-day Simple Moving Average (SMA) is poised to cross above the 50-day SMA, forming a Bull Cross. If this occurs on a daily closing basis, it could confirm an upward trend, opening the door for a new rally.
In such a scenario, the possibility of extending the ongoing uptrend to the mid-May high near $2,020 cannot be ruled out. The previous multi-month high at $2,009 will be retested.
Failure to protect the $2,000 level might lead to a correction towards the round figure of $1,990, with the Friday low of $1,977 potentially coming into play.
Sustaining below this level could prompt Gold sellers to test the static support level at $1,963.
The 14-day Relative Strength Index (RSI) is hovering just above the overbought zone, indicating a stronger upward trend ahead.
The 21-day Simple Moving Average (SMA) is poised to cross above the 50-day SMA, forming a Bull Cross. If this occurs on a daily closing basis, it could confirm an upward trend, opening the door for a new rally.
In such a scenario, the possibility of extending the ongoing uptrend to the mid-May high near $2,020 cannot be ruled out. The previous multi-month high at $2,009 will be retested.
Failure to protect the $2,000 level might lead to a correction towards the round figure of $1,990, with the Friday low of $1,977 potentially coming into play.
Sustaining below this level could prompt Gold sellers to test the static support level at $1,963.
