As gold started a medium-term decline on May 18, which ended on June 05 when the price tested a low of 1162. It looks like the correction might be taking place, which could lead to a further extension up. The confirmation of a short-term uptrend scenario could be the breakout of the downtrend trendline that took place on June 10. Note that the same happened at the RSI oscilator were the trendline was also broken.
Fibonacci levels applied to the trendline breakout point show that metal faced the resistance near 1189 (R1), right after the breakout. The following move down resulted in rejection of the 76.4% support level S3 (1173) on June 15.
Currently, gold stuck between R1 and S3. There is a still high probability of a short-term uptrend. Until the price is between 1179 (S2) and 1184 (S1,) consider buying yellow metal targeting 0% Fibonacci level is seen at 1206.71 (R3). Only a 4h close below 1172 (S3) would give bears enough power to push the price towards the previously hit low of 1162.
Support: 1184.65, 1179.50,
Resistance: 1189.90, 1196.31,
The material has been provided by InstaForex Company – www.instaforex.com