GOLD risks deeper pullback as dollar remains resilient, but looks for further direction signals
Gold price is consolidating within a narrow range on Wednesday, as recent three-day pullback ran out of steam after posting the biggest one-day loss in more than a month on Tuesday.
Fresh bears faced headwinds at pivotal Fibo support at $1926 (38.2% of $1884/$1952 upleg), with ability to hold above this level to keep larger bullish bias for fresh push higher after a healthy correction.
Strong bullish momentum on daily chart supports the notion, although near-term direction signals are still unclear as other indicators are in mixed mode.
Firm dollar on expectations that the Fed would keep high interest rates for a longer period, keep the metal vulnerable, with clear break of $1926 pivot to expose next key supports at $1916 (200DMA), $1910 (Fibo 61.8%) and $1900 (psychological).
Res: 1930; 1940; 1952; 1963
Sup: 1922; 1916; 1909; 1900
