Spot gold is consolidating after 0.75% advance on Wednesday, which generated bullish signal on break and close above pivotal Fibo barrier at $1472 (Fibo 38.2% of $1515/$1445 fall). Gold was strongly boosted by Fed’s decision to keep interest rates unchanged on the last meeting in 2019 and more by signals that the central bank might keep the policy unchanged through 2020. Adding to positive outlook is the uncertainty about US/China trade negotiations as the 15 Dec deadline for imposing new tariffs on Chinese goods nears and if the US proceeds, fresh risk aversion would be sparked that would further inflate yellow metal’s price. On the other side, bulls may stall if two sides agree to delay tariffs. Daily techs are supportive as bullish momentum continues to rise, MA’s (10/20/30) in positive setup and daily Tenkan-sen/Kijun-sen are converged and attempting to form bull-cross. Repeated close above broken $1472 pivot would add to positive signals and open way towards initial target at $1480 (50% retracement / 55DMA) and more significant $1489 level (Fibo 61.8% / daily cloud base / 100DMA). Initial support lays at $1472, followed by rising 10DMA ($1468) and 20DMA ($1466) with break of the latter to generate negative signal and sideline bulls.
Res: 1478, 1480, 1484, 1489
Sup: 1472, 1468, 1466, 1462