Overview:
Since our last analysis, gold has been trading upwards. As we expected, the price tested the level of $1,232.18 in a high volume. We can observe demand in a high volume but weak price action in the daily time frame. The short-term trend is bullish. The daily resistance at the level of $1,224.00 is on the test. If the price breaks the level of $1,224.00 in a high volume and strong price action takes place, we may see possible testing at the level of $1,250.00 (Fibonacci expansion 100%). Be careful when selling and watch for potential buying opportunities on dips. I found support area around the levels of $1,210.00-$1,214.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,224.60
R2: 1,225.30
R3: 1,226.15
Support levels:
S1: 1,222.80
S2: 1,222.00
S3: 1,221.35
Trading recommendations: Be careful when selling gold at this stage and watch for potential buying opportunities (buy on dips).
