Gold is finding it difficult to make a decisive move in either direction mid-week. After falling earlier in the day, XAU/USD regained its traction and climbed above $2,030. The benchmark 10-year US yield holds steady at around 4% and limits the pair’s action.
Gold price is likely to maintain its side-ways momentum so long as it remains confined between the 21-day Simple Moving Average (SMA) and 50-day SMA at $2,045 and $2,015 respectively.
The 14-day Relative Strength Index (RSI) indicator sitting just beneath the midline, restricting Gold buyers while they continue to find support from the Bull Cross confirmed last Friday.
The 100-day SMA closed above the 200-day SMA on Friday, confirming the bullish crossover.
If the rebound sustains, the immediate resistance is seen at the 21-day SMA at $2,045. The next bullish target for Gold price is envisioned at Friday’s high of $2,054, above which doors reopen for a test of the $2,100 barrier.
On the downside, the initial support is seen at the $2,015 confluence, where the 50-day SMA and Monday’s low coincide. A daily closing below the latter is critical to resuming the downtrend toward the $2,000 mark.