Gold hits multi-month high after dovish Fed

Gold continues to shine and hit the highest since mid-April on Thursday, in extension of the rally on Wednesday, sparked by dovish Fed.
Investors entered fresh gold longs, as dollar became less popular after the US central bank announced widely expected 25 basis points hike, but the markets took the latest decision as signal that the Fed is nearing its tightening cycle.
Fresh advance broke above former top at $1949 (Jan 26) signaling bullish continuation after a shallow $1949/$1900 correction was completed.
Bulls pressure Fibo barrier at $1962, violation of which would open way for retest of targets at $1998/$2000 (Apr 18 lower top / psychological).
Although fundamentals remain supportive for metal’s price, technical studies on daily chart warn that bulls may lose traction and hold in extended consolidation, as the price is rapidly losing positive momentum and RSI & Stochastic are overbought.
Limited dips, as preferred scenario, should find ground above rising daily Tenkan-sen ($1930) to keep larger bulls intact and offer better buying opportunities.
Caution on break of the latter, which would warn of deeper pullback towards $1900 and $1878 (daily Kijun-sen) and put larger bulls on hold.

Res: 1959; 1962; 1978; 2000
Sup: 1950; 1930; 1900; 1878