GOLD needs to defend $1,977 support for a new uptrend

GOLD will go down after the previous period of strong war influence. To start a new surge in the nearest future as the war spreads more and more.

The US Dollar Index fell to a two-month low of 104.94 while the benchmark 10-year US Treasury yield extended its sell-off, hitting a new five-week high below the key 4.50 level. %. The tapering of the Fed's hawkish bets combined with the US Treasury's cut to refinancing estimates emerged as the main catalysts behind their weakness.

Unable to sustain above $2,000 multiple times last week and finding demand at lower levels, Gold prices have formed a potential ascending triangle on the daily chart.

The 14-day Relative Strength Index (RSI) is moving lower but remains above 50, maintaining a 'buy the dip' stance on Gold prices.

Adding to the optimism about Gold prices, prices trade above all major Simple Moving Averages (SMAs) on the said timeframe.

The immediate buffer awaits at uptrend line support at $1,977, below which the November 1 low of $1,970 will be retested. Failure to resist above the latter would target static support at $1,963, paving the way for the psychological $1,950 level.