- Stalling at $1,960
- Key fib levels remain a big test
Gold is also trading marginally higher today and struggling around a notable resistance level, $1,960.
It broke through $1,940 yesterday on the back of the inflation numbers and has now entered retracement territory where a few key levels will be put to the test.
From a technical standpoint, those are the 38.2%, 50%, and 61.8% Fibonacci retracement levels – May highs to June lows – which happen to fall around $1,960, $1,980, and $2,000, respectively.
Gold Daily
Source – OANDA on Trading View
A break of these may indicate that gold is back in bullish territory, although the price may face some resistance in the interim.
A look at the 4-hour chart supports the more bullish view in gold but there is scope for corrective moves along the way. We’ve seen some consolidation since breaking $1,940 – which also saw the price break above the 200/233-period simple moving average band. Price has been quite responsive to this in the past.
If the price does pull back a little, it will be interesting to see whether it tests $1,940 from above, with a rotation off here viewed to be confirmation of the initial breakout and a bullish signal. Especially with it coinciding with that SMA band.
Gold 4-Hour
Source – OANDA on Trading View