Overview:
Gold has been trading sideways around the level of $1,205.00. The price supports cluster around the level of $1,201.00. We can observe weak price action in a volume just above the average in the daily time frame. The short-term trend is neutral. The daily resistance at the level of $1,224.00 held successfully. 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%). Anyway, I found strong trading range between the price of $1,214.00 and $1,201.00. I am waiting for a clear breakout with a high volume to confirm direction. We can observe sign of weakness (SOW) inside the trading range, which is a sign that this is more likely a redistribution.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,205.40
R2: 1,206.00
R3: 1,206.50
Support levels:
S1: 1,204.00
S2: 1,203.50
S3: 1,202.80
Trading recommendations: Be careful when buying gold below the price of $1,225.00.
