Gold may extend pullback towards key supports at $1478/76
Spot gold probes again below $1500 level on Thursday, weighed by softer than expected tone from Fed, as US central bank, in minutes of July meeting, signaled that needs more evidence in order to determine future action regarding monetary policy.
Gold price advanced nearly 17% in past four months as fears of global slowdown and threats of US/China trade war escalation, prompted investors into safe-havens.
Easing from new over six-years high at $1534, is seen as corrective action of larger advance that is to provide better opportunities to re-enter bullish market.
There is a plenty of space towards key supports at $1478/76 (rising 20DMA / Fibo 38.2% of $1381/$1534 upleg) which are expected to contain pullback and keep larger bulls intact.
Weakening momentum and formation of 5/10DMA bear-cross on daily chart, keep near-term action under pressure for further easing.
All eyes are on Friday’s speech of Fed’s Powell, who is expected to provide more information about US monetary policy outlook, as market anticipate another rate cut in September, but FOMC Wednesday’s minutes showed that the central bank is unlikely to adopt more aggressive rate cut approach for now.
Res: 1500; 1504; 1506; 1512
Sup: 1493; 1487; 1478; 1476