Gold price rebounds toward $2,000, snapping a three-day downtrend. XAU/USD is set to take out key resistance at $2,007, FXStreet’s Dhwani Mehta reports.

Gold price defends key support

“The powerful support at $1,983 is guarding the downside for Gold price. That level is the confluence of the pennant resistance and support.”

The next resistance is seen at the $2,000 mark, above which the $2,007 static resistance will come into play. Thereafter, a sustained move above the $2,020 figure will expose the yearly top at $2,032.”

“Daily closing below the $1,983 critical support will prompt Gold sellers to resume the correction toward the April 4 low at $1,977. The next downside cushion is envisioned at the bullish 21-Daily Moving Average (DMA) at $1,970. The $1,960 round figure will be a tough nut to crack for Gold bears should the selling extend.”