Gold drops to $3,306, upside challenged by $3,338-$3,345, bears eyeing for $3,293-$3,273
The announcement from Trump administration about potential trade deal with multiple countries lifts sentiments for Dollar strength and a possible recovery to 97.70 - 97.90 causing safe haven flow from Gold o Dollar.
Gestures from Federal Reserve about unlikely rate cut in July makes Gold traders cautious.
A strong rejection seen from $3345-$3338 areas increases selling pressure in Gold which again breaks below $3320 (38.2% Fibonacci zone) to drop straight to $3306 (50% Fibonacci zone)
Some measured recovery is seen from off the lows and faces hurdle at broken support turned into immediate resistance $3320
If Gold consolidates and breaks above $3320, prices are likely to extend recovery towards $3325-$3333-$3338
Bullish conviction however, requires a decisive break above $3338-$3348
On the flip side, break below $3306 will expose next downside potential to $3293 followed by $3273 aligning with 61.8% and 78.6% Fibonacci zones respectively.
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.
