Early in the American session, gold is trading around 1,964.94, below the 21 SMA, and above the 200 EMA. Since October 19, gold has been moving within a bearish trend channel. We have seen that in the last few hours, gold fell sharply towards the support zone of 1953.
This fall in gold towards the critical zone of 1,953 is partly due to a technical correction, due to overbought levels from the maximum of 1,997. Given that gold remains in demand as a safe haven as tensions in the Middle East remain firm. This fact could encourage the next bullish cycle and the price could reach the psychological level of $2,000.
Gold could face strong resistance located at 1,972 (21 SMA). In case it finds rejection at this level, gold could resume its bearish movement inside the bearish channel and it could reach the area of 1,940 (200 EMA) and even 6/8 Murray located at 1,937.
On the other hand, in the event of a sharp break above the downtrend channel and a break above the 21 SMA around 1,975, gold could continue to rise until reaching the psychological level of $2,000, it could even reach towards +1/8 Murray located at 2,067.
