GOLD – Bulls pause as price takes a breather, with dips expected to be shallow and find support above the key $2600 level

Gold eased from its new record high of $2670 early Wednesday, taking a breather after a 1.10% rise on Tuesday, driven by a weaker dollar amid expectations of further aggressive rate cuts from the Fed.

The People’s Bank of China’s decision to cut rates spurred Chinese investors towards safe-haven assets, providing additional support to gold prices.

While daily technical indicators show overbought conditions and weakening bullish momentum, signaling a potential pullback, the overall bullish structure and favorable fundamentals suggest any correction will be mild. Bulls are likely to resume their upward push, targeting $2675 (Fibonacci 238.2% projection of the $2286 rise) and the psychological $2700 level.

So far, dips have been contained above initial supports at $2650/45, with further protection at $2637 (55-hour moving average) and $2623 (hourly higher base).

A deeper pullback, if it occurs, should find support above the key $2600 level (psychological support/10-day moving average) to maintain the larger bullish trend.

Res: 2670; 2675; 2700; 2714
Sup: 2650; 2645; 2637; 2623