Bulls are consolidating before final attack at all-time high at $1920
Spot gold maintains firm bullish tone and holding just below new multi-year high ($1898) and round-figure $1900 barrier on Friday.
The metal is heading for the biggest weekly gains since the last week of March, as weakening dollar and inflation expectations due to stimulus for recovery of global economies hit by coronavirus crisis.
Gold is usually used as a hedge against inflation which comes as response to fiscal stimulus measures, as interest rates are very unlikely to go higher in current circumstances.
However, bulls usually face headwinds from significant barriers, in this case it is $1900/20 and may hold for some time below it, to consolidate before resuming higher.
With overall environment being very bullish for gold, shallow dips (ideally to be contained at $1870/45 zone) are expected to provide fresh buying opportunities.
Bulls keep in focus all-time high at $1920 (Sep 2011), with break here to expose psychological $2000 barrier.
Res: 1898; 1900; 1920; 1950
Sup: 1880; 1872; 1863; 1850