- Gold holds on to recovery gains above 50% Fibonacci retracement.
- Bullish MACD indicates further upside.
- A break of 61.8% Fibonacci retracement will recall late-September highs.
With the sustained trading beyond 50% Fibonacci retracement of September-October upside, Gold is now gearing up to confront another key resistance while taking the bids to $1,514 during the initial Asian session on Monday.
In doing to 61.8% Fibonacci retracement level of $1,519 will be the first, and the key, to watch for, a break of which could escalate the recent recovery towards late-September high near $1,535.
It’s worth mentioning that 12-bar Moving Average Convergence and Divergence (MACD) is indicating a bullish signal and hence further upside to the key resistance seems quite an expected outcome.
Should there be further upside beyond $1,535, $1,550 and September month high close to $1557/58 will appear on buyers’ radar.
Meanwhile, a downside break below 50% Fibonacci retracement level of $1,506 highlights the importance of a 200-bar Simple Moving Average (SMA) level of $1,498 and a monthly rising trend line around $1,484.
During the metal’s declines under $1,484, $1,478 and the previous month low surrounding $1,455 could lure sellers.
Gold 4-hour chart
Trend: pullback expected
- R3 1530.43
- R2 1522.91
- R1 1518.65
- PP 1511.13
- S1 1506.87
- S2 1499.35
- S3 1495.09
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.