Gold price gains traction on relaxing China Covid curbs, weaker dollar
Gold price is establishing above psychological $1800 barrier and moving within the upper part of over three-week range.
Weaker dollar on renewed risk appetite, after China relaxed its Covid restriction, provide fresh boost to gold price on Tuesday.
Fresh strength generates an initial signal that bulls are gaining traction and ready to resume after the action was stuck in a consolidation during past three weeks (triple weekly Doji candle).
Daily studies show rising bullish momentum and 20/200 DMA golden cross underpinning the action, which needs a weekly close above the range top ($1824) to confirm bullish continuation and expose next targets at $1842 (50% retracement of $2070/$1614) and $1855 base of weekly Ichimoku cloud).
Broken $1800 level (reinforced by 10DMA) reverted to support, which should ideally keep the downside protected and maintain fresh bullish bias and guard pivotal supports at $1788 (broken Fibo 38.2%) and $1782 (200DMA).
Res: 1811; 1824; 1842; 1855
Sup: 1800; 1788; 1782; 1773