Overview:
Gold has been trading downwards. As we had expected, the price tested the level of $1,183.51 in a high volume. The short-term trend is beairsh. The price broke the strong support cluster at $1,201.00 and we may expect further bearish direction. We can observe a sign of weakness (SOW) after a breakout of trading range, which signals that buying looks risky. Our Fibonacci retracement 61.8% at the level of $1,192.00 got broken. Support levels are at the price of $1,178.00 and $1,167.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,203.00
R2: 1,208.50
R3: 1,217.40
Support levels:
S1: 1,185.20
S2: 1,179.70
S3: 1,170.80
Trading recommendations: Be careful when buying gold below the price of $1,225.00 and watch for selling opportunities after retracement.