Gold Heading for 61.8% Retracement – Sellers Looming!


Who's ready to trade the gold today? We’ve got an exciting set up on gold. Check it out!

As mentioned in my earlier update, Turning Point For Gold – Bearish Sentiment, our trade idea was to take a buy only above $1255 to aim at $1260. I'm happy to say the trade went as planned.

Gold - 2 Hours Chart Gold – 2-Hour Chart 

Now, the gold is heading north to complete the 61.8% Fibonacci retracement. On Friday, it came out of the bullish channel, which was formed last week, and now the same bullish channel is extending a hurdle near $1267/69.

Gold is likely to have an immediate resistance at $1264 and that's the same level where gold completes its 61.8% retracement. If you are wondering what's the Fibonacci and how to trade it, I recommend checking out FX Leader Fibonacci Trading Strategy article which can help you deal with oversold & overbought trade setups.

 

Investors Sentiment

As for fundamentals, we don't have anything major, but keep in mind, the investors are still trading the highly optimistic labor market figures from the United States. Therefore, the sentiment for the Buck is still bullish, diminishing the yellow metal's appeal.

 

Gold Trading Plan

Watch $1264, as below this level the gold has the potential to stay in sell until $1259 and $1255 today.

 
ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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