After yesterday’s rally, fueled by Powell’s dovish statements, gold prices extend gains on Thursday. The bullion refreshed highs around $1,1427, where the prices encountered a local resistance and retreated partially.
The upside impetus accelerated yesterday after a break above the key moving averages in the hourly charts. As the yellow metal got back above the $1,1400 psychological level, the short-term technical picture improves substantially. The greenback remains under pressure, further digesting the soft tone of Powell's testimony. Against this backdrop, the bullion could continue its bullish attempts in the near future.
A daily close above $1,425 will open the way to further gains, but to retest recent long-term highs, the futures will likely need additional catalyst. By the way, should risk aversion resume after the current euphoria, the precious metal will derive support from safe-haven demand as well. Should traders switch to a partial profit-taking, the immediate support is expected around $1,1408.