Gold gains above $1,197 – 61.8% Fibo Level in Play
Arslan Butt • 1 min read
Gold prices crawled lower early during the Asian session, as the dollar rose after the United States inflicted a new round of tariffs on Chinese imports, worsening global trade worries. The US President Donald Trump imposed 10% tariffs on about $200 billion worth of Chinese imports.
As a result, traders triggered the safe haven appeal but this time they started moving funds from gold to the US dollar. Typically, gold is considered to be a safe-haven asset, but the months-long trade disagreement between Washington and Beijing has urged investors to opt for the US dollar in the hope that the United States has less to lose from the conflict.
Gold has completed 61.8% Fibonacci retracement at $1,197 and investors are confused about the next move. Well, the violation of $1,197 on the lower side will prompt further selling until $1,192.
On the upper side, $1,200 will be a very strong hurdle today and we can probably stay bearish below the same level. Stay tuned to FX Leaders signals page for more updates!