Gold needs to break $1,980 support for short-term downside

Gold price grinds lower between a three-month-old ascending resistance line and an upward-sloping trend line from late March. That said, the quote recently bounced off a convergence of the 21-day EMA and an upward-sloping support line from March 22, close to 1 ,980, which in turn suggests the commodity’s further recovery towards the 2 ,020 immediate hurdle. However, nearly overbought RSI and nearness to the aforementioned multi-month-old resistance line, currently around 2 ,045, could challenge the XAUUSD bulls.

Meanwhile, a downside break of the 1 ,980 support confluence could quickly drag the Gold price toward February’s high of around 1 ,960. Following that, 50% and 61.8% Fibonacci retracement of its late November 2022 to early April 2023 upside, near 1 ,890 and 1 ,853 in that order, could test the Gold sellers. It’s worth noting that the XAUUSD remains on the buyer’s radar unless it offers a daily closing below the 200-day EMA level of around 1 ,845.

Overall, the Gold price is likely to grind higher unless breaking the 1 ,845 level. That said, a downside break of 1 ,980 can trigger the metal’s short-term fall.