FX.co ★ Gold analysis for March 14, 2014

Overview:
Since our last analysis, gold has been trading upwards, the price tested the level of 1,387.56 on high volume (buying climax on H4 timeframe). According to the daily chart, we can observe weak demand, which is sign that buying at this stage looks risky. Anyway, we may see testing the levels of 1,396.00-1,401.00 before downward correction. Its still risky to sell Gold since we have more space for upward movement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,375.37

R2: 1,377.83

R3: 1,381.80

Support levels:

S1: 1,367.43

S2: 1,364.97

S3: 1,361.00

Trading recommendation: Trading the metal, be careful with buying at this stage since Gold is on the high new ground and we got signs of weakness in the background.