Gold recovery accelerates, underpinned by rising daily cloud base
Fresh bullish acceleration in European session on Friday hit two-week high, as gold price benefits from weaker dollar.
Calmer tones from the US policymakers about rate hikes in the coming months, weakened dollar’s bullish stance and offered fresh support to the yellow metal’s price.
Markets focus on today’s top events for the dollar – a number of Fed speakers and US non-manufacturing PMI, which could provide fresh direction signals.
Near-term action continues to trend higher, underpinned by rising daily cloud base, which contained the pullback from $1959 (2023 high, posted on Feb 2) and continued to mark strong support.
Bulls eye pivotal Fibo barrier at $1864 (38.2% retracement of $1959/$1804 descend), break of which would reinforce near-term bullish structure and spark fresh recovery.
The yellow metal is also on track for a weekly gain of around 2% (the biggest weekly advance since the second week of January), which is also forming a bullish engulfing pattern on weekly chart and adding to reversal signals, (still to be verified on close above $1863).
Daily Ichimoku cloud base ($1836) should protect the downside and keep renewed bulls in play.
Res: 1860; 1864; 1872; 1882
Sup: 1836; 1826; 1804; 1800