Gold bulls finally take out $1,814, what next?

Gold price rebounds to hit fresh five-week highs at $1,816. Despite the recent upward trajectory, gold price is on track to book its first annual loss in three years.

The immediate upside, however, appears capped by $1,817, where the pivot point one-day R1 converges with the pivot point one-week R1.

Up next, the pivot point one-day R2 at $1,820 emerges as a roadblock towards the powerful hurdle at $1,828. That level is the intersection of the pivot point one-day R3 and pivot point one-week R2.

On the flip, the previous strong resistance-turned support around $1,811 will limit any pullback in gold price.

The Fibonacci 38.2% one-day, SMA10 four-hour and the previous week’s high coincide at that point.

If the downside pressure intensifies, then bears could aim for the confluence of the Fibonacci 38.2% one-month, Fibonacci 23.6% one-week and SMA5 one-day around $1,805

The line in the sand for gold buyers is seen at $1,801, the meeting point of the Fibonacci 38.2% one-week, SMA50 one-day and SMA100 one-hour.

Fundamental Overview

Gold price is trading close to the highest levels in five weeks clocked at $1,816. The bright metal witnessed an influx of safe-haven flows after coronavirus cases globally jump nearly 50% from a month ago, hitting a pandemic record. Despite the recent upward trajectory, gold price is on track to book its first annual loss in three years. Meanwhile, weakness in the long-dated Treasury yields and the US dollar underpin the yellow metal amid the holiday season mood.