Gold Rests in Oversold Zone, 38.3% Retracement on the Radar
Arslan Butt • 1 min read
GOLD is steady above a strong support level of $1,300, and there hasn’t been much movement in gold due to lack of economic events. Gold’s bearish momentum was triggered over a stronger dollar.
Actually, the demand for safe-haven asset diminished over stable US labor and inflation figures. This positive data relieved global economic growth concerns.
Gold’s technical side is suggesting a bullish retracement. For instance, the relative strength index and stochastics are stuck in the oversold zone. The RSI value stays at 21 and Stochastic is at 19.
After applying a Fibonacci retracement tool, we can see gold has already completed the 23.6% retracement at $1,295, and 38.2% retracement level rests at $1,298.
The idea is to stay bullish above $1,290 with a target of $1,295 and $1,298. While bearish trades are preferred below $1,290.