The Gold spot price (XAUUSD) skyrocketed with the help of safe-haven demand amid the banking turmoil and risk aversion that spread through the market in recent weeks. The spot price broke through the psychological $2000 per ounce level twice this week, reaching one-year highs. However, the US dollar shows signs of stabilisation, opening the door for the bears to reaffirm their presence. 

The US Federal Reserve’s latest commentary cued a slightly dovish tone, which pressured the US dollar, aiding the Gold bulls to ignite the rally. However, Jerome Powell remains stubborn in his projection that rate cuts are not an option in the near-term picture. Along with a reduction in jobless claims, the dollar regained some strength and stability, leaving Gold at an inflexion point. 

Technical 

On the 4H chart, Gold is trading close to the daily pivot point of $1987.17 per ounce. The trend is evidently bullish, with US dollar strength pressuring the momentum. If support at the pivot holds, the uptrend could continue, which could see the spot price test the psychological $2000 per ounce level yet again, where a breakout could trigger another leg up to $2009.82 per ounce (R1). 

On the other hand, if the bears break through the pivot, it could signal a short-term reversal of the bullish trend, which could entice the bears to push lower toward $1971.06 (S1) and $1948.41 (S2) per ounce. The US PMI statistics on Friday could be vital in determining the price action around the pivot point.  

Summary 

With XAUUSD treading around the pivot point, the following directional price move could be vital in determining the short-term trend. With safe-haven demand remaining strong, a bounce off $1987.17 could see the spot price attempting another $2000 per ounce resistance test. 

Sources: Koyfin, Tradingview