Gold remains steady after Fed, boosted by fears of rising inflation

Slobodan Drvenica Windsor Brokers

Spot gold kept positive tone on Thursday despite warning technical signal of indecision and possible stall from Wednesday’s long-legged Doji candle.

The metal remains supported by fears of rising inflation which dominates in the near-term picture and offset concerns about Fed’s talks about tapering bond purchases, while fresh weakness of dollar added to positive tone.
An uptrend from $1676 double-bottom generated strong bullish signal on Monday’s close above pivotal barriers at $1847/51 (200DMA / Fibo 61.8% of $1959/$1676 bear-leg) with today’s formation of 10/200DMA golden-cross, further underpinning the action.

Bulls pressure weekly cloud top ($1899) and eye barriers at $1892/$1900 (76.4% of $1959/$1676 / psychological) break of which would further boost the action and expose next key level at $1922 (Fibo 61.8% $2074/$1676).
Broken Fibo resistance at $1851 reverted to strong support which so far holds and keep bulls fully in play.

Res: 1890; 1892; 1900; 1922

Sup: 1865; 1851; 1845; 1840

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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