The price of gold climbed from a low of $1,978 and touched a high of $2,005 in November this month. Gold prices spiked double digits in three weeks going up by 18% in the charts. The precious metal is now at its March 2023 high and is attracting bullish sentiments in the indices. Gold is unable to hold above $2,000 leading to bearish price prediction.
However, gold faced rejection twice this month after climbing above the $2,000 mark. It slipped in price minutes after touching $2,005 on Wednesday and is now trading at $1,995. The yellow metal is finding it hard to break the $2,000 resistance mark opening the door for a price dip.
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Gold Price Prediction: A Dip Might Be on the Cards After $2,000 Rejection
Gold rallied hard this month and a rejection at the $2,000 level indicates there’s room for a downward trajectory. Investors are indulging in profit booking and the large sell-off is causing a slump in the charts. The commodity delivered stellar returns in Q4 of 2023 and institutional investors are jumping ship in fears of a slump.
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From a technical perspective, gold prices continue to throw mixed signals as the moving averages show a golden cross pattern. The 50-day MA is attempting to cross above the 100-day MA and indicates an upside swing that could contradict the rally as the candle closes.
Therefore, gold could spike but quickly retrace in price after reaching the $2,000 level. Another leg-up at the moment might be challenging as the precious metal is already up nearly 18% in 3 weeks. The support level for gold prices during the next downturn is the $1,983 level. If the prices break the resistance, the next support level is $1,968.
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If the commodity markets experience a slump, then gold prices could find resistance at the $1,950 level. In conclusion, gold’s inability to hold strong above the $2,000 price mark opens the door for a possible dip in the coming weeks.
