Gold jumped more than 3% on Wednesday as the US dollar slid on a dovish outlook for Fed policy. The move puts the metal within reach of a break above its eight-day trading range, with resistance layered up to $4,666 and support now sitting under $4,440.
Gold surged over 3% on Wednesday, driven by a sharp fall in the US dollar as traders lean toward a dovish outlook for Fed monetary policy. The rally strengthens the case for a break above the metal's eight-day range.
That range is defined by a $4,310 floor, reinforced by the daily Ichimoku cloud base at $4,358, with range tops at the $4,440 zone. Several upticks have failed to register a daily close above the Fibonacci barrier at $4,416, the 50% retracement of the $4,889/$3,942 bear-leg.
A sustained break higher would signal bullish continuation, with immediate targets at $4,509 — the 200-day moving average — and $4,527, the Fibonacci 61.8% retracement. Stronger acceleration would then bring $4,600 and $4,666, the Fibonacci 76.4% level, into focus.
Daily studies have firmed following multiple bull-crosses on the moving averages, with strong bullish momentum and the thick daily cloud underpinning the move. The broken barriers at $4,440 and $4,416 now revert to solid supports, which should hold potential dips and keep the fresh bullish structure intact.
Source: ActionForex
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