Gold price managed to defend the $1,970 support and staged a rebound on Monday, with the bulls now looking to find a foothold above the flattish 21-Daily Moving Average (DMA) support-turned-resistance at $1,995.

Daily closing above it will initiate a fresh recovery mode toward the static resistance at around $2,015. Ahead of that the $2,000 round figure will offer stiff resistance to Gold buyers.

The 14-day Relative Strength Index (RSI) is edging higher above the midline, justifying the renewed upside in the Gold price. If the rebound gathers steam, Gold price will look to challenge the previous yearly high at $2,032.

On the flip side, should Gold bulls face rejection above the 21 DMA barrier, a drop back toward the previous day’s low of $1,974 cannot be ruled. Further south the the static support at $1,970 could be prodded once again.

The last line of defense for Gold buyers is seen at the 1,950 level, the confluence of the key psychological level and April 3 low.

Source: fxstreet.com