Gold Drops Below $2,100, Potential for Further Correction
Updated
Gold prices are gradually decreasing below $2,100, reversing sharply from the all-time high of $2,144 in Monday's Asian trading session. The surge in gold prices was driven by increased bets on the Fed's interest rate cut in March and concerns over new geopolitical tensions between Houthi rebels in Yemen and the United States. The early Monday gold price hike indicates an imminent significant correction, especially as the 14-day Relative Strength Index (RSI) remains in overbought territory.
The latest retreat could accelerate if the intraday low of $2,072 appears. Strong support is observed at the psychological level of $2,050, below which further layers may open for testing the $2,000 threshold.
However, any potential downsides may be mild and could be considered good buying opportunities as the Golden Cross unfolds. The 50-day Simple Moving Average (SMA) closing above the 200-day SMA confirmed the Golden Cross on Friday.
Closing above $2,100 is essential to initiate a sustainable uptrend towards the $2,200 milestone. Before that, the record high of $2,044 will serve as a strong resistance level.
The latest retreat could accelerate if the intraday low of $2,072 appears. Strong support is observed at the psychological level of $2,050, below which further layers may open for testing the $2,000 threshold.
However, any potential downsides may be mild and could be considered good buying opportunities as the Golden Cross unfolds. The 50-day Simple Moving Average (SMA) closing above the 200-day SMA confirmed the Golden Cross on Friday.
Closing above $2,100 is essential to initiate a sustainable uptrend towards the $2,200 milestone. Before that, the record high of $2,044 will serve as a strong resistance level.
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