Gold Jumps on Safe Haven – Bullish Butterfly Plays Well!

Gold can drop to 38.2% Fibo retracement level of $1,200 and 61.8% level of $1,196 today. Here's a trading plan...


Recalling our earlier forecast Gold Takes A Bullish Turn – Bullish Butterfly In Play, the precious metal has traded exactly in line with our forecast. The bullish butterfly pattern was suggesting a sharp bullish movement in the market and traders reacted on it.

Most of the bullish trend was triggered due to weakness in the dollar and boosted demand for the safe-haven metal on concerns surrounding Italy’s plans to tackle the budgetary deficit. The risk appetite was fueled after the European Union (EU) officials expressed anxieties about Italy’s budget plan, which would extend the deficit significantly. The deficit gap revived fears of the Eurozone debt crisis. In response to this, investors tried to take shelter under safe-haven gold.

Gold – 3 Hour Chart

For the moment, gold is trading in the overbought zone. The RSI value is holding above 80, signifying the bulls may get exhausted and sellers may jump in to catch the retracement.

Considering this, gold can drop to 38.2% Fibo retracement level of $1,200 and 61.8% level of $1,196 today. Good luck!

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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