Gold price is looking to extend Wednesday’s rally towards the 100-Daily Moving Average (DMA) at $1838, having found a strong foothold above the critical 200-DMA at $1826. This analysis points towards the key Fibonacci area, which also lines a support zone, spurring potential new waves of buying, as the safe-haven trade seems to pick up the pace.

Gold buyers cheered the US dollar weakness the previous day after Federal Reserve (Fed) Chairman Jerome Powell rejected the need for monetary policy adjustments. The policymaker also said that the Fed would give “lots of notice” before tapering and/or rate hikes.

Also putting the safe-haven bid under the greenback were the coronavirus (COVID-19) concerns as the covid variants take on the developed economies and the jabbing is still slow in Asia-Pacific. This pushes the World Bank Group President David Malpass to say, per Reuters, “Vaccine shortages mean many countries in East Asia and Pacific may not fully vaccinate population until 2024 even as new variants emerge.” The policymaker also trimmed East Asia-Pacific GDP growth to 4.0% versus 4.4% expected in March.

It’s worth noting that the UK registered the highest infections since January and Tokyo also marked the biggest jump in daily cases since May. Further, Indonesia, unfortunately, leads Asia on virus outbreak tally whereas Australia has already stretched covid-led local lockdowns.

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