Gold advanced 5% in past three sessions and hit two-week high on Thursday, as fresh waves of optimism about potential end of US-Iran war revived risk appetite and deflated prices of crude oil and dollar.
The metal rose further on Thursday, extending Wednesday’s 3% rally (the biggest daily gain since Mar 31, when bulls penetrated and closed within thick daily cloud) rising above $4700 (round-figure) and breaking Fibo 61.8% of $4889/$4500 ($4741).
Daily studies have improved on completion of higher base at $4500 zone and formation of reversal pattern on strong three-day rally, although caution is required as daily MAs are in mixed setup and 14-d momentum is still in negative territory.
Extension and close above $4741 Fibo level and nearby 100DMA ($4775) is needed to further strengthen near-term structure for attack at pivotal barriers at $4800 (round-figure and daily cloud top ($4848).
However, most of focus should remain on developments in geopolitics, as one of key factors that influence the price action nowadays.
Res: 4775; 4800; 4848; 4889
Sup: 4741; 4700; 4649; 4632
