The greenback’s recovery has curbed gold’s rebound. In fact, gold’s decline was even steeper proportionally than the dollar’s recovery, highlighting the difficulties bullion to climb above and even to hold onto the key level of $1,920. This area, firstly reached in 2011 and for almost a decade the record high for gold, is now the first real resistance for bullion.
Moreover, we can also see that at $1,880-$1,885 buyers started to react and pulled the spot price back up to $1,890-$1,900. This is important as bullion, at least for the time being, did not fall to $1,850-$1,860, which is a major support to monitor. In other words, we are still in a wide lateral phase, in the trading range between $1,850 and $2,070. Bullion will need to break through $1,920 to have the chance to challenge the psychological threshold of $2,000 once again.
