Gold bears looking for a brak of the $1,300/oz level to 38.2% Fibo target down at $1,275/oz


  • Gold is headed for a test of the 23.6% Fibo retracement of the mid-August swing lows to recent swing highs.
  • Bears are testing below the ascending channel's support. 
  • Gold is trading at $1,314/oz, down from the day's highs of $1,327/oz having printed a daily low of $1,313.11oz. 

Gold prices have been steadily declining since last week's highs of $1,343/oz and has made a fresh reversal low today following the unexpected uptick in US GDP Q4. The advanced read on Q4 US GDP came in stronger than expected at 2.6% saar vs the market's expectations of 2.2%, vs Q3 3.4%. The data superseded the risk-off mood on the news of an abrupt end to the U.S.-North Korea denuclearization talks. 

"News that Trump walked out of his meeting with Kim Jong Un because the two sides couldn’t reach an agreement over North Korea’s nuclear disarmament dashed hopes for an easing in geopolitical tensions," analysts at ANZ explained.

"After the meeting Trump said Kim wanted US sanctions lifted “in their entirety” in exchange for partial denuclearisation. However, North Korean foreign minister Ri Yong-Ho later disputed this claim saying they were only after a partial removal of sanctions and that they offered a realistic proposal. The summit’s abrupt end saw global equities slip. There’s been no indication from the US of whether it will consider another summit."

Gold levels

The price of gold is at a critical juncture, albeit oversold on the hourly charts and trading above its ATR of 11.01. Bears are targetting the 23.6% Fibo down at 1302 while daily stochastics lean bearish and near-term stochastics offer some wiggle room before sellers will likely come up for a breath of air. Bears will look to guard the trend line support area around 1318/20 for prospects of a break of the 1300 handle and onto the 38.2% fibo located at 1275, with the confluence of the late Jan support area. 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.

EUR/USD News

GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 

GBP/USD News

XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more

Forex MAJORS

Cryptocurrencies

Signatures