As gold hits a new all-time high of $2943, some early signs of overbought conditions start coming in with bullish momentum taking a pause a tad lower before reaching a 161.8% Fibonacci extension of $2946.
Tuesday's close came with a bearish candle which keeps sentiments under check and the London session witnessed sideways trades under bearish bias which is likely to become more clear below the previous day's low of $2883
Immediate support sits at 5 Day EMA of $2878 below which the next downside may reach a 23.6% Fibonacci retracement of $2858 as the local demand zone for a minor pullback.
If selling pressure increases causing a break below $2858, the metal is likely to witness further decline to the 2nd retracement zone of 38.2% Fibonacci level of $2805.
3rd retracement is positioned at a 50% Fibonacci zone of $2763 and a further drop for the breakout zone to be retested at $2743 which may align with 50 Day EMA over time.
This area may attract short-term buying again for a measured recovery rally to revisit $2888.
On the flip side, bulls will need to reclaim the critical resistance zone of $2900-$2910 to advance further toward $2930 and subsequently surpass the recent high of $2943 to reach $2946.
