FX.co ★ Gold analysis for July 09, 2014

Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of 1,326.25 in a volume above average according to the 4H timeframe. Bullish movement is a result of very weak supply from yesterday. According to the daily timeframe, we can observe very weak supply with a volume below average in the background, which is a sign that supply lost its power. Buying Gold still looks unsafe since the price is near the resistance level at 1,333.00. Be careful with buying and watch for potential selling opportunities. If the price breaks the level of 1,333.00, we may see more upward movement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,323.18

R2: 1,325.88

R3: 1,330.23

Support levels:

S1: 1,314.48

S2: 1,311.78

S3: 1,307.43

Trading recommendation: Be careful with buying since the price is near the resistance zone of 1,333.00.