Gold price fell further and hit new multi-week low on Thursday, following break of psychological $1900 support.
The yellow metal price remains firmly in red, weighed by hawkish central banks which signaled further rate hikes to continue fighting stubbornly high inflation and prompted traders into dollar.
In addition, better than expected US Q1 GDP and weekly jobless claims added to signals that the US economy remains robust and will likely avoid recession, reducing need for run into safety and additionally weighing on fading safe-haven demand.
The price probes below $1900 for the first time since mid-March, with close below this level to further weaken near-term structure and open way for deeper drop, exposing targets at $1869/$1856 (Fibo 76.4% of $$1804/$2080 / rising 200DMA).
The metal is also on track for the second straight significant weekly loss, as well as to end month with over 3% down, which contributes to negative signals.
Technical studies on daily chart are predominantly bearish, with oversold conditions being so far ignored, although some price adjustment should be anticipated in coming sessions.
Broken supports at $1900/$1909 should ideally cap, with extended upticks not to exceed falling 10DMA ($1924), to keep larger bears intact.
Res: 1900; 1909; 1924; 1932.
Sup: 1885; 1869; 1856; 1845.
