Overview :
Since our last analysis, gold has been trading sideways around the price of 1,234.00. There is very low activity on the market and we are waiting for larger volume and price action. Our resistance level at the price of 1,234.00 is again on the test, which is a sign that buying at this stage looks risky. According to the daily chart, we can observe weak demand in a volume below the average. On the mid term prospective, price rejection from our major Fibonacci expansion 100% at the price of 1,193.00, which caused price to start bullish phase. If the price breaks the level of 1,234.00 in a high volume, we may see the testing of the level of 1,244.00 (Fibonacci retracement 38.2%).
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,236.03
R2: 1,239.43
R3: 1,244.93
Support levels
S1: 1,225.03
S2: 1,221.63
S3: 1,216.13
Trading recommendations: Buying still looks risky since gold is near resistance level
