Gold has extended its daily rally and touched its highest level in over a year above $2,010. Data from the US triggered a fresh leg of USD selloff in the American session and provided a boost to XAU/USD.
Gold price retreated from a two-week-old descending resistance line, around $1,990 by the press time, amid a looming bear cross on the MACD and downward-sloping RSI (14) line.
As a result, the XAU/USD sellers are likely to extend the latest fall towards the 10-Exponential Moving Average (EMA) level surrounding $1,968.
However, the Gold price weakness below $1,968 could quickly recall $1,930 and the $1,900 threshold, a break of which highlights 200-EMA support of $1,830.
Meanwhile, recovery moves need to cross the fortnight-long resistance surrounding $1,990 to convince the Gold buyers.
Even so, the $2,000 psychological magnet and an upward-sloping resistance line from mid-January, close to $2,027, may act as the last defense of the Gold bears.
Overall, Gold price is likely to remain firmer but a short-term pullback can’t be ruled out.