Spot gold fell to 10-week low on Thursday registering a firm break of psychological $1900 level and a marginal close below important technical support at $1890 (Fibo 61.8% of $1780/$2070 / lows of Mar 29 and Apr 25) on Wednesday that added to negative signals.
The yellow metal lost traction after recovery failed at $2000 barrier in mid-April and came under pressure from surging dollar on prospects for more aggressive Fed that hurt demand, along with lockdowns in China due to new wave of Omicron variant infections.
Probe below $1900/$1890 pivots cracked support at $1875 (100DMA) but need to register a clear break lower (after attacks at $1900 zone failed several times in past two months) to signal continuation of the bear-leg from $1998 and open way for extension towards $1848 (Fibo 76.4%), possibly to $1833 (200DMA).
Res: 1900; 1907; 1911; 1925.
Sup: 1875; 1872; 1848; 1833.
