Gold Heading Towards 61.8% Retracement, Dollar Gains Support
Arslan Butt • 1 min read
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.