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
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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