Gold built a base at $1920 but recovery needs more signals for confirmation
Spot gold advanced 1.4% on Friday after dovish signals from Fed that ultra-low rates would stay for prolonged period, sent dollar lower.
The yellow metal’s price was congested for more than one week, awaiting signals from Jerome Powell.
After the announcement of central bank’s new strategy deflated the greenback, the yellow metal can start recovery.
The base was already built at $1920 (Fibo 38.2% of $1670/$2074) bull-leg / former all-time high of 2011) where several attacks failed, but recovery needs initial signal on close above 20DMA ($1968) that would expose pivotal barriers at $2000/$2015 (psychological / 18 Aug recovery high) and confirm reversal on break of the latter.
North-heading daily indicators and bullish weekly studies support the notion.
Only break and close below $1920 pivot would weaken near-term structure and neutralize recovery attempts.
Res: 1959; 1968; 1976; 2000
Sup: 1948; 1938; 1920; 1902