Gold drops $179 from $4,211 high as Fed rate cut expectations fade
- Gold falls $179 from $4211 to $4032.
- Safe Haven demand drops as chances of December rate cut fade.
- $4210 turns into short term resistance.
- $4023 turns in to strategic support.
What happened in Gold today?
Early Asian session witnessed bullish continuation in Gold retesting $4211. However, price failed to gain acceptance above the $4211 high and subsequent price action followed a gradual lower high-lower low initially, only to unleash heavy and strong one sided sell off that dragged the metal all the way to $4038 as selling intensified after 4120-$4110 area failed to hold as support.
Fundamental drivers
Initial recovery attempts in Dollar, subsequent drop to yesterday's low 98.97.
What is expected ahead?
The next support sits at 61.8% Fibonacci retracement zone aligned with $4023.
The rebound needs a clear break above immediate hurdle $4100 followed by strong break above next resistance $4110-$4120 consolidation zone.
Short term challenge is $4185 followed by $4215.
If price retests $4023 on the downside, this zone calls for monitoring for any reversal signs and buyers intervention as failing to hold as support will expose next potential zone 78.6% Fibonacci retracement at $3963 which is considered as discounted zone, often a strong reversal area and point of interest with the best Risk vs Reward.
Author
Sunil Kumar Dixit
SK Charting
Sunil Kumar Dixit is Chief Technical Strategist and founder of SK Charting, a research firm based in India. He tracks Precious Metals, Energy, Indices and Currency Pairs. He also participates as an expert panellist on Channel Television, Nigeria.
