Gold: respects major Fib support …again! by Mary McNamara

Gold is trading above major 61.8% Fibonacci support on the monthly time frame and has respected this key level again overnight.

 Gold monthly: the 61.8% fib is derived from the last major swing high move on the monthly chart time frame. This fib comes in near the $1,145 level:

GoldMonthly

Gold 4hr: price bounced up from this support again overnight:

Gold4hr

Gold 30 min: the 30 min chart shows how price fell to test the 61.8% fib level, to the pip, during the Asian and early London session but held to enable a ‘tradeable’ bounce during the US session:

Gold30min

USDX daily: the strength with Gold came through as the USD continues to stall under resistance from the 2010 highs. Any continued weakness with the USDX would help to support Gold but, obviously, renewed strength would put pressure on the metal. 

USDXdaily

Gold traders need to also be mindful that Switzerland votes on Nov 30 on a referendum question about a partial return to the Gold standard. This article may help readers here. 

I wrote a Gold article yesterday where I noted that I thought Gold could continue to bounce around this 61.8% fib region until the end of the month.  I see this from a technical perspective but this possibility is enhanced even more so now given the Swiss referendum situation. I would still want to see a monthly close below $1,145 before being confident of any possible bearish continuation.

<

p style=”text-align: justify”>

The post Gold: respects major Fib support …again! appeared first on www.forextell.com.

Leave a Reply