Gold beginning to look like its correction is running out of steam. Gold fundamentals have not changed, slump in demand, steady supply are still there and now high probability of FED keeping rates on hold, only adding to downward pressure for the precious metal. Looking at the daily candle chart we can see that the retracement that started after the fall from its previous rally to 1306.83, tested the Fibonacci 50% retracement line last week and closed below the 38.2% line, this week’s open was below the 38.2% line and after testing it is now looking to close well below it. Would expect to see further downward price movement from here.

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