Spot gold stands at the back foot following comments from Fed Chair Powell, which signal hawkish approach in tackling soaring inflation and lifted dollar.
The metal’s price moved towards the lower boundary of the range (($1894/$1949) that extends into fifth day, signaling that expectations of more aggressive approach from the US central bank remain dominant dollar driver, offsetting gold supportive factors from dark outlook about the Ukraine crisis.
Daily studies add to bearish near-term view, as momentum continues to move deeper into negative territory and RSI is heading south below neutrality zone, while daily Tenkan-sen and Kijun-sen formed a bear cross.
Fresh bears may attack again key $1900 zone (psychological/Mar 16 low at $1894/Fibo 61.8% of $1780/$2070 rally at $1890), with clear break here to further weaken near-term structure and signal extension of pullback a multi-month high at $2070.
Rising 55DMA marks next support at $1873, followed by the lower 20-d Bollinger band ($1866), violation of which would unmask Fibo 76.4% level at $1848.
Solid resistance is offered by 20DMA at $1948, which should continue to cap and maintain bearish bias.
Res: 1925; 1940; 1948; 1954.
Sup: 1907; 1900; 1894; 1890.
