KUALA LUMPUR: Gold price should extend its movement towards the US$2,050 per ounce level, after breaking past the psychological resistance of US$2,000.
This would be followed by the US$2,100 mark in the near term, some analysts said.
They said gold might close above US$2,000 for the third time on a daily basis this week as the strength in the yellow metal was backed by multiple factors.
This included the overall weak US Dollar Index as well as turmoil in the banking sector and potential end of monetary policy tightening by the US Federal Reserve, the Bank of England and the Reserve Bank of Australia.
All economic indicators were fuelling strength in the gold bulls, they said.
RHB Research technical analyser Joseph Chai said riding on renewed momentum, the COMEX Gold broke past the US$2,000 resistance on Thursday to close at US$2,013.30.
The yellow metal started off with a gap up and opened higher at US$1,992.50, before climbing towards the US$2,023.30 day high before the close.
"The latest price action saw the commodity charting a fresh 'higher high' with 'higher low', indicating that momentum is gaining pace while solidifying the bullish setup," Chai said today.
On the downside, he said the recent US$1,953.70 low would become the immediate support, providing a buffer in the event the commodity pulls back on profit-taking.
"As the bulls are still in control, we keep to the positive bias," he remarked.
© New Straits Times Press (M) Bhd
from New Straits Times https://ift.tt/4k8Fbu5
0 Comments