Gold is trying to maintain the bounce today after Wednesday’s slide to 1925 dollars region. The FOMC minutes released yesterday helped the greenback to gain strength, affecting all assets priced in dollars.
The US Treasury yield remained weak yesterday and capped the dollar strength.
The US Jobless claims will be watched for more clues as doubts on economic revival linger; the confusion has been helping the gold prices.
Looking at the technical picture: the gold is trading in a range below the powerful resistance around 1955 dollars – previous high and five-period SMA in the gold’s four-hour chart coincide here.
The price action above 1955 will see another confluence as the resistance: at 1957, Fibonacci 61.8 Percent and the upper line of the 15-minutes Bollinger Band.
A move beyond 1957 dollars will set the next target at 1963 dollars, 5-day SMA.
Further bullishness in the gold price will test 1970 dollars, the meeting point of 100-hour SMA and the middle region of daily Bollinger Band.
The bears would like to see one-day Fibonacci 23.6 Percent, at 1944 dollars, attacked and push the prices to one week Fibonacci 38.2 Percent – at 1935 dollars.
Bulls will hold the ground if the price holds above 1931 dollars support – the Fibonacci 23.6 Percent one-month.
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