Gold price edged lower on Thursday after hitting a series of new marginally higher highs in past three days ($4630/34/43).
Today’s calmer rhetoric from President Trump over Iran crisis and conflict with Fed Chief Powell, cooled the sentiment and paused recent rally for now.
Trump opted for wait and see strategy instead of military action in Iran, as he initially signaled and sidelined the story about removing Powell from his position before his mandate ends in May.
However, overall picture remains bullish, with no significant changes in the key factors that drive metal’s price, suggesting that bulls may take some time for consolidation before resuming.
Today’s dip was so far limited, with price holding above $4600 after a brief dip to $4581, although overbought daily studies (also RSI bearish divergence), keep the downside vulnerable.
First significant supports lay at $4550 (former top / broken bull-channel upper line), followed by $ 4500 zone (psychological / 10DMA / Fibo 38.2% of $4274/$4643 upleg) where extended dips should find firm ground.
Res: 4643; 4687; 4700; 4720.
Sup: 4581; 4550; 4500; 4458.
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