Gold remains steady after Fed, boosted by fears of rising inflation
|Spot gold kept positive tone on Thursday despite warning technical signal of indecision and possible stall from Wednesday’s long-legged Doji candle.
The metal remains supported by fears of rising inflation which dominates in the near-term picture and offset concerns about Fed’s talks about tapering bond purchases, while fresh weakness of dollar added to positive tone.
An uptrend from $1676 double-bottom generated strong bullish signal on Monday’s close above pivotal barriers at $1847/51 (200DMA / Fibo 61.8% of $1959/$1676 bear-leg) with today’s formation of 10/200DMA golden-cross, further underpinning the action.
Bulls pressure weekly cloud top ($1899) and eye barriers at $1892/$1900 (76.4% of $1959/$1676 / psychological) break of which would further boost the action and expose next key level at $1922 (Fibo 61.8% $2074/$1676).
Broken Fibo resistance at $1851 reverted to strong support which so far holds and keep bulls fully in play.
Res: 1890; 1892; 1900; 1922
Sup: 1865; 1851; 1845; 1840
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