Gold has been trading downwards since our last analysis. The price tested the level of $1,203.13 in a high volume. We can observe supply in a high volume with strong price action in the daily time frame. The short-term trend is neutral. The daily resistance at the level of $1,224.00 held successfully. If the price breaks the level of $1,224.00 in a high volume and strong price action takes place, we may see possible testing at the level of $1,250.00 (Fibonacci expansion 100%). Be careful when buying gold at this stage since we saw strong supply on daily timeframe. Our Fibonacci retracement 50% at $1,205.00. If the price breaks the level of $1,205.00, we may see testing the level of $1,200.00 (Fibonacci retracement 61.8%).
Daily Fibonacci pivot points:
Trading recommendations: Be careful when buying at this stage since we can got strong supply in the background.
The material has been provided by InstaForex Company – www.instaforex.com