After falling to multi-week lows last Wednesday, gold has recovered some ground in recent days; however, the rebound appears to be losing momentum, with prices approaching trendline resistance at $2,040. To gauge the future direction, it’s vital to see how XAU/USD reacts around this ceiling, keeping in mind that a breakout could usher in a move towards $2,065. Moving up, all eyes will be on $2,080.
In case of a bearish rejection around $2,040, technical support is positioned around $2,005. The precious metal might find stability in this area during a pullback before mounting a turnaround, but should prices fall below this threshold, the bears could initiate an assault on $1,975.
