Gold price closed Thursday finally above the bearish 21-Daily Moving Average (DMA), now at $1,736, confirming a bullish reversal from yearly lows. The 14-day Relative Strength Index (RSI) is holding firmer above the midline, justifying the renewed upside in the metal.
Bulls now look to recapture the horizontal trendline hurdle at $1,773 should the upswing extend. Further up, doors will open up for a test of the bearish 50 DMA at $1,797. Alternatively, the immediate support is seen at $1,750 psychological level, followed by the critical 21 DMA – previous resistance turned support.
Should the downside extend, gold sellers will aim for the strong demand area around the $1,715 region.