Gold buyers gain a further edge to start the trading day

Gold trades back above key near-term levels

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Gold was a notable mover in US trading yesterday, with the dollar weakness also helping out the precious metal as it advanced towards the 200-hour MA (blue line).

That helped to stall overnight gains but buyers are finding more momentum in the new day to push past that currently.

This suggests the near-term bias is now more bullish – from more neutral yesterday – as price action tracks above the 200-hour MA but there is some resistance from the 61.8 retracement level @ $1,994.36, though the $2,000 level is the key one to watch.

The figure handle is a key psychological level to be mindful of and will reinvigorate buyers if we do manage to get back above that in the coming sessions.

Otherwise, it will act as a key resistance barrier for the time being.

For now, buyers are looking poised to start the new day but $2,000 still offers a big challenge as we look to get things underway in the European session ahead.

The key spots to watch in the market are still the dollar and the risk mood, so let’s see if the market will carry on with the theme from US trading yesterday.