Xauusd Bulls Will Likely Pause Near 2k

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Xauusd Bulls Will Likely Pause Near 2k

XAU/USD: Bulls Will Likely Pause Near $2000 Level

The trend in the Gold (XAU/USD) remains bullish as the yellow metal is on the path to closing the 3rd week in profit. However, Gold prices are expected to stay under the $ 2,000 level as it is also an important resistance zone.

The reason behind the appreciation in Gold prices is the Middle East conflict and the growing uncertainty in the world. Against this backdrop, the demand for Gold is on the rise, but traders are also watching out for the Fed's commitment to high interest rates as well.

Fed Policy Remains Important

So, while Gold is enjoying a bull run, the one factor that is keeping it under pressure is the Fed's policy going into the year 2024.

Furthermore, the $2K is also an important level where many offers are present. So, if the Gold bulls need to cross the $2000 level, a strong bullish momentum will be needed.

On the daily chart, the indicators are turning south, which is a sign that the bulls will be taking a break soon. At the same time, profit-taking will also take place due to the end-of-the-week trading. So that's yet another factor that will send the gold prices lower in the short term.

Any dips in the Gold will be limited as the 10 SMA (daily chart) will provide the essential support. But if the dips are extreme, the support will be seen near the $1932 and the $1900 levels.

Looking at the Gold resistance zones, we have the $1989 followed by the $1993 and the $2000. On the downside, we have the support levels at the $1976 and then the $1953. After these 2 levels, the next level to watch out is the $1947.

Another thing to watch out for is the end of the year 2023, which will also play a key role in the Gold prices. For now, it appears to be seen whether the Gold prices will gain as we approach the yearly end or they will go down as traders opt for profit-taking.

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