Gold Heading Towards 61.8% Retracement, Dollar Gains Support

A day before, the safe-haven commodity gold dropped nearly $20 as US and China made progress on a trade deal. Actually, the bearish reversal in gold was triggered after the US central bank Fed released hawkish FOMC meeting minutes.

Whereas, gold prices gained support upon the release of Philadelphia Fed manufacturing index which slipped to a reading of -4.1 in February from 17 beforehand. The core durable goods orders also grew at a rate of 0.1% vs. the forecast of a 0.2% rise.

Taking a look at the technical side, GOLD is heading west to complete 61.8% Fibonacci retracement at $1,319. Let us recall, that’s the same level which was keeping gold bearish during the second week of February.

So, we can expect gold to take a bullish turn after testing $1,319 support. The bounce off can extend gold prices towards $1,326.

I think gold will continue trading sideways as investor focus remains on Canadian Retail Sales figures which are due to be released during the US session.

Good luck!

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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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