Just when it looked like Gold price is initiating a fresh downtrend on Monday, Gold price bulls jumped back on the bids. Acceptance above $1,990 is critical for XAU/USD bulls to extend control, FXStreet’s Dhwani Mehta reports.

Gold price looks to waver in the pennant, with upside risks intact

“The downside break from a two-week-old pennant formation appears elusive, as bulls now aim for a sustained break above the falling trendline resistance at $1,990 to validate a breakout. On confirmation of the pennant breakout, the rebound in XAU/USD could regain traction, eyeing the key $2,000 level.  The next significant resistance levels are stacked up at the yearly high of $2,010 and the $2,050 psychological level.”

“The immediate support is seen at the rising trendline, now at $1,968, below which Gold sellers are likely to regain complete control. Monday’s low of $1,950 will be challenged on additional declines. The last line of defense for Gold bulls is seen at the strong support of $,1935, where the bullish 21-Daily Moving Average (DMA) aligns.”