It has been a day of tough economic news in the United States. Following a sub-par Retail Sales (Sept.) report, Business Inventories (August) has come in at 0.0% underperforming projections (0.2%). At this point, the data is having a negative impact on sentiment, boosting December gold just above a key Fibonacci support level.

Over the past several months, December GOLD futures have been committed to the 1500.0 level. Price hasn’t been able to deviate too far from its vicinity, setting up in a longer-term rotational pattern. As a result, this market has consolidated between 1565.0 and 1475.0. Currently, bullion is testing the bottom third of this range, just above a key Fibonacci support area at 1458.8.

Fibonacci Support In View For December Gold Futures

In a Live Market Update from late-September, I issued a buy recommendation from just north of the Macro 38% Fibonacci support level. The trade turned out to be a winner ― is bullion headed for another test of the $1458.0 area? 

Here are the levels to watch in this market for the near future:

• Resistance(1): Bollinger MP, 1504.0
• Resistance(2): Daily SMA, 1508.9
• Support(1): 38% May/August Bull Run, 1458.8

Bottom Line: For the time being, gold remains in long-term bullish territory. Given the fundamental uncertainties surrounding Brexit, global economic slowdown, and the Trump impeachment, there are a variety of reasons to be long bullion.

In the event we see December gold put in a hard test of macro 38% Fibonacci support at $1458.8, a long trade will set up. Until elected, I will have buy orders in queue from 1461.8. With an initial stop at 1448.4, this position trade produces 268 ticks on a 1:2 risk vs reward management plan.