Will Spot Gold Remain Above The $2,000 Level?

On the first trading day of the week, spot gold displayed a weak performance amidst the rise in 10-year Treasury bond yields and a strong start to the week for the US Dollar Index. However, due to the weakening of the dollar, the price of gold per ounce is making an effort to stay above the $2,000 level. This is a result of the banking sector's liquidity-related problems falling off the agenda, which has had a direct impact on the direction of the dollar, affecting gold prices. Despite expectations of a contraction, the Empire State Manufacturing Index released by the New York Fed showed an increase, which has somewhat alleviated recession concerns. However, market players are eagerly awaiting the release of PMI data on Friday, hoping for further clues regarding the recession signal. Increased volatility in the short term could result in a possible correction and profit-taking for gold. Nevertheless, compared to past cycles, gold is expected to continue its upward trend in the medium and long term. From a technical perspective, the peak of $2,070 is the first resistance level, with a potential upward breakout leading to $2,100 levels. In the event of possible pullbacks, the main support levels to be followed are $2,000 and $1,960.