Gold Heading for 61.8% Retracement – Sellers Looming! - Forex News by FX Leaders

Gold Heading for 61.8% Retracement – Sellers Looming!

Posted Tuesday, August 8, 2017 by
Arslan Butt • 1 min read

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.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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