Gold remains constructive and holding near $2000 barrier on Thursday after Tue/Wed double failure to register daily close above this level.
Increased headwinds in this zone were anticipated, but shallow dips point to strong bids and keep $2000 pivot under pressure.
Gold benefited from weaker US dollar on signals that the Fed is likely done with rate hikes, as inflation (although still well above target) is in a steady decline and labor market is weakening amid higher interest rates.
On the other hand, initial optimism that the Fed may start cutting rates as early as March next year, is fading, despite less hawkish FOMC minutes, which may prompt the US central bank to keep interest rates elevated for some time.
Technical picture remains bullishly aligned and may boost fresh attempts through $2000 and retest of Nov 21 high ($2007) and Oct 27 peak ($2009) initially.
Res: 2000; 2007; 2009; 2021.
Sup: 1987; 1979; 1976; 1970.
