Recovery rally from $1860 (Feb 6 low) extends into fourth straight day and accelerated on Thursday, underpinned by weaker dollar.
Although the recent recovery was steady, gains were rather small and continued to face headwinds, signaled by long upper shadows of daily candles.
This suggests that despite the near-term price action is supported, upticks are likely to be limited, pointing to extended range trading, as traders await firmer signals from next week’s US inflation report, which is expected to put more light on Fed’s near-future steps and determine metal’s direction.
Technical studies show mixed setup of daily moving averages, strong negative momentum and stochastic about to emerge from oversold territory that together contribute with mixed signals to likely near-term range-trading scenario.
Pivotal support lays at $1860 and near-term action is expected to remain biased higher while holding above the latter, while break lower would risk deeper pullback.
At the upside, daily Kijun-sen (1892) marks initial resistance, followed by $1900 zone (psychological / Fibo 38.2% of $1959/$1860 / 10DMA) and upper pivot at $1909 (daily Tenkan-sen / 50% retracement) break of which is needed to bring bulls fully in play.
Res: 1890; 1900; 1909; 1921
Sup: 1872; 1860; 1844; 1827