Gold Technical Analysis: Bulls committed at key support ahead of 61.8% Fibonacci target

Gold has completed a 50% mean reversion of the late June swing lows to recent highs.
But Bulls will need to get back above the 1500 psychological level.

Ross J Burland FXStreet

Gold has completed a 50% mean reversion of the late June swing lows to recent highs around 1470 and slipped to close proximity of the 61.8% Fibonacci target.

However, as fragile risk-appetite is as we move into the final quarter of the year, expectations of a worsening economic backdrop, the safe-haven metal attracted a bid just ahead of key support marked by the convergence of a Fibo target and the July highs/resistance guarding a full 100% retracement to 1380.

On the upside, bulls will need to get back above the 1500 psychological level and then the 1535 resistance comes in again ahead of the 1550 target which guards territories towards 1590 as the 127.2% Fibo target.

Gold daily chart

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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