Gold price eases further on Friday, extending pullback from new record high $2222 (posted on Thursday) after a strong upside rejection on probe above psychological $2200 barrier.
The yellow metal came under increased pressure from stronger dollar after Fed kept the policy unchanged and signaled that high borrowing cost may stay elevated as the US economy is in good condition, which cooled talks about rate cuts from June.
However, the US central bank remains on track towards policy easing this year, which will continue to underpin gold price in the longer run.
Significant supports at $2146/41 (this week’s low / former record high of Dec 4) are exposed and should ideally contain and keep the price action within limited consolidation range, guarding lower pivot at $2131 (Fibo 38.2% of $1984/$2222, reinforced by rising 20DMA), where extended dips should find firm ground to mark a healthy correction of a larger rally from $1984).
Technical picture is mixed on daily chart as MA’s are in bullish setup, but momentum and RSI indicators are heading south after diverging from the price action in earlier sessions, which requires caution.
Res: 2186; 2200; 2222; 2250.
Sup: 2160; 2146; 2141; 2131.
