Gold – weaker dollar and trade war uncertainty to continue to support

Gold remained steady on Wednesday and in consolidation mode after strong rally in past two days, which reversed around 76.4% of pullback from new record high ($2956) to $2832 (correction low).

Weaker dollar across the board continues to fuel gold advance with revived safe-haven demand on strong uncertainty over the impact of trade war expected to additionally support metal’s price.

Return and close above $2900 level generated fresh positive signal, although situation is still vulnerable as daily studies are mixed (fresh negative momentum is conflicting MA’s in bullish configuration.

Near-term action is expected to remain biased higher while holding above $2900/$2894 supports (psychological / daily Tenkan-sen) with firm break of cracked Fibo barrier at $2926 (76.4%) to bring bulls fully in play for renewed attack at all-time high and possible extension higher on break.

Res: 2926; 2942; 2956; 2985
Sup: 2908; 2900; 2894; 2879