Gold continues to benefit from weaker dollar on dovish Fed, BoE; key barrier under pressure

Spot gold extends higher on Monday after a brief consolidation, following 2.8% advance in past two days.
The yellow metal hit new two-month high after dovish tones from major central banks soured risk sentiment.
The Federal Reserve announced a gradual reduction of it bond-buying but still believes that current high inflation is transitory that fades expectations for earlier than expected rate hike, while the Bank of England shocked by keeping interest rates unchanged despite wide expectations for 0.15% hike in November.
The latest advance improved near-term outlook, as last week’s close above psychological $1800 barrier after several failures, generated initial bullish signal.
Bullish engulfing pattern on weekly chart underpins the action, along with bullish studies on daily / weekly charts.
Bulls eye key barriers at $1828/34 (Fibo 38.2% of $2074/$1676 / July 15/29 and Sep 3 peaks), violation of which would signal an end of larger range trade and continuation of recovery leg from $1721 (Sep 29 low).
Overbought stochastic and sideways-moving momentum warn of headwinds that bears may face en-route to $1834 pivot.
Narrow consolidation should ideally precede final push higher, with deeper dips to stay above broken $1800 support to keep bulls in play.

Res: 1826; 1834; 1844; 1860
Sup: 1813; 1800; 1795; 1790