FX.co ★ Gold analysis for December 24, 2014

Overview :

Since our last analysis, gold has been trading sideways around the price of 1,177.00. We are facing very low activity on the market due to the holidays. Our Fibonacci retracement 61.8% at the price of 1.172.00 has been held successfully, which is a sign that selling gold at this stage looks risky. According to the H4 time frame, we can observe selling climax in the background and then sideways. My advice is to watch for potential buying opportunities near the lows. Any larger demand in a high volume may confirm further bullish phase. According to the daily time frame, we can observe neutral bar in a very low volume.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,183.21

R2: 1,186.15

R3: 1,190.93

Support levels:

S1: 1,173.65

S2: 1,170.71

S3: 1,165.93

Trading recommendations: Watch for potential buying opportunities after retracement (buy on the lows).