Gold extended recovery on Thursday, following 2.4% rally on Wednesday (the biggest one-day gains since Oct 13), sparked by dovish Fed.
Strong bounce is forming reversal pattern on daily chart and generates initial signal of an end of corrective phase from new all-time high ($2141).
Fresh bulls returned above $2000 and dented pivotal barrier at $2037 (Fibo 38.2% of $2141/$1973 pullback / daily Kijun-sen), close above which will add to positive near-term outlook and expose targets at $2057 and $2077 (Fibo 50% and 61.8% respectively).
Bullish daily technical studies contribute to improved fundamentals after the Fed announced that its tightening cycle is likely over and rate cuts to start in early 2024, with expectations for a total of 150 basis points easing expected next year.
Broken 10DMA ($2020) offers immediate support, which should ideally contain and guard 20DMA pivot ($2012).
Overall bias is expected to remain with bulls while the price stays above $2000 (metal is on track for the third straight weekly close above this level).
Res: 2040; 2057; 2064; 2077.
Sup: 2020; 2012; 2009; 2000.
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