Overview:
Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of 1,208.00 in a volume below average. According to the 4H time frame, we can observe weak demand in a volume below average, which is a sign that buying still looks risky. If the price breaks the level of 1,218.00 in a higher volume, we may see potential testing the level of Fibonacci expansion 100% at the price of 1,194.00. Anyway, if the price starts with upward movement, there is a Fibonacci retracement 38.2% from the most recent downward leg at the price of 1,220.00.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,216.98
R2: 1,217.36
R3: 1,217.97
Support levels
S1: 1,215.76
S2: 1,215.15
S3: 1,214.77
Trading recommendations: Buying still looks risky since we can't see any larger reaction from buyers.
