FX.co ★ Gold analysis for June 16, 2014

Overview:

Since our last analysis, gold has been trading upwards, as we expected, the price tested the level of 1,284.67. As you can see in the graph, the price tested our resistance level (swing low like resistance). We must wait to see what will happen around our resistance level, if the price breaks the level of 1,285.00, we may see possible testing the level of 1,296.00 (submajor Fibonacci retracement 61.8%). According to the 4H timeframe, we can observe weak demand, which is a sign that buying at this stage looks risky.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,279.12

R2: 1,279.68

R3: 1,280.60

Support levels:

S1: 1,277.28

S2: 1,276.72

S3: 1,275.80

Trading recommendation: Be careful with buying at this stage since the price is near resistance.