Gold initially spiked higher overnight on Fed Powell but quickly retreated. It’s now back below 4 hour 55 EMA. The development dampened the bullish case of upside breakout. Instead, consolidation from 2075.18 is set to extend further in the near term. On the downside, break of 1902.73 will resume the fall from 2015.66, as the third leg of the consolidation from 2075.18. In this case, deeper decline would be seen to 1862.55 support.
On the upside, break of 2015.66 will bring retest of 2075.18 high. We’re not expecting a firm break there yet even in this case. But that would depend on the upside momentum when the rally happens.
