Gold Price Analysis: 61.8% Fibonacci questions pullback targeting $1,600
|- Gold prices step back from two-week high.
- Key Fibonacci retracement support, bullish MACD can question the sellers.
- Buyers may follow the weekly resistance line for short-term direction.
Following its failure to cross $1,640, Gold prices slip to $1,617, down 0.75%, ahead of the European session on Wednesday.
While overbought RSI could be considered as a reason for the latest pullback, 61.8% Fibonacci retracement of March 09-16 fall, near $1,607, seems to hold the key for the metal’s drop towards 1,600 mark.
In a case where the bullion stays below $1,600, 50% Fibonacci retracement could be of interest to the sellers.
On the upside, buyers will enter once the quote rises again beyond $1,640 to aim for the short-term rising trend-line, currently at $1,671.
Given the metal’s sustained run-up past-$1,671, the monthly top beyond $1,700 will be on the bulls’ radars.
Gold four-hour chart
Trend: Bullish
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.