Bulls accelerate but face headwinds at key $1800 resistance zone

Gold rallies for the third straight day, with strong acceleration seen on Thursday, after Fed chief Powell signaled that the central bank may start scaling back the pace of tightening as early as at next policy meeting in December, although Fed’s fight against inflation is far from over.
The yellow metal rose by 8.3% in November (the biggest monthly gain since July 2020) and formed a reversal pattern on monthly chart, with weekly studies also improving on rising bullish momentum and formation of 10/200WMA golden cross.
Daily chart shows firm bullish structure as Tenkan-sen and Kijun-sen are in bullish setup and the price is gaining positive momentum.
Today’s rally broke through important barriers at $1788 (Fibo 38.2% of $2070/$1614 fall), $1796 (200DMA), and also cracked psychological $1800 barrier, hitting the highest since Aug 10.
Sustained break through $1800 zone (including Aug peak at $1807), would generate strong bullish signal for extension of the second leg of recovery rally from the base at $1615 zone towards targets at $1842 (50% of $2070/$1614) and $1817 (weekly cloud base).
Today’s close above $1788/86 (broken Fibo 38.2% / former top of Nov 15) is seen as minimum requirement to keep bulls intact.

Res: 1804; 1807; 1842; 1877
Sup: 1786; 1772; 1768; 1754