XAU/USD Outlook: Bulls are consolidating under more than five-year high
|GOLD
Spot gold is holding within narrow consolidation under new high at $1393 (the highest in more than five years) in early hours of US session on Thursday, following strong bullish acceleration in late Wed/early Thu trading. Gold price rallied Fed reiterated its dovish stance and signs of rate cut as early as July and accelerated higher on comments from US President Trump about his authority to replace Fed chairman Powell. Adding to strong bullish stance was increased safe-haven demand after Iran downed US military drone. Fresh rally (gold was 2.4% up for the day at one point) broke through some important barriers at $1366 (25 Jan / 8 Apr 2018 double-top); $1375 (6/11 July 2016 highs) and $1382 (Fibo 38.2% of larger $1923/$1047 fall) which generated strong bullish signal which would need confirmation on weekly close above. Psychological $1400 barrier is in focus, with further advance to expose target at $1433 (28 Aug 2013 high). Bulls may show stronger hesitation ahead of $1400 barrier, as traders start to take profit that would keep the price in extended consolidative/corrective phase. Former tops at $1375/66 should contain dips to keep bulls intact for eventual attack at $1400 barrier.
Res: 1393; 1396; 1400; 1427
Sup: 1375; 1366; 1358; 1346
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