FX.co ★ Gold analysis for August 12, 2014

Overview:

Since our last analysis, gold has been trading sideways, around the price of 1,310.00. We are still waiting larger movmeent and larger volume (activity). According to the 4H timeframe, we can observe weak demand on the market, which is a sign that buying looks risky. We can also observe rejection from our Fibonacci retracement 61.8% at the price of 1,320.00. Anyway, if the price breaks the level of 1,321.00 in a higher volume, we may see testing the level of 1,343.00.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,312.41

R2: 1,313.95

R3: 1,316.43

Support levels:

S1: 1,307.45

S2: 1,305.91

S3: 1,303.43

Trading recommendations: Buying Gold looks risky since we got successful rejection from our Fibonacci retracement 61.8%.