Gold extends correction to $3,300, rebound struggles at $3,332

Sunil Kumar Dixit SK Charting

What's going on with Gold..?

Gold extends downward correction reaching 3301 yesterday evening which is a tad below 61.8% Fibonacci zone and starts bounce back off the lows reaching immediate resistance 3330.
Price is currently consolidating above immediate support 3313 which if breaks, expect further decline towards retest of 3300 and extend downward correction to next leg lower 78.6% Fibonacci zone at 3291 and 3286
Gold rebound requires break and stability above 3332 which next targets 3342 followed by 3352 while next major resistance sits at 3365-3368

Fundamental factors:

Strengthening US Dollar likely to put Gold under pressure.
Trade Deal with Japan and EU improve economic optimism and reduce safe haven demand for Gold.

Note: As long as Gold maintains stability above local demand zone 3313, the technical factors indicate possible rebound possibilities.

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.

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