The yellow metal extended its losses at yesterday's session. The metal broke below $1,216.00, which triggered panic selling from the technical view. China is heading into a holiday period ahead of the Lunar New year. Before this holiday period, physical buying is also moderate. We recommended selling at $1,229.00 with the targets at $1,207.00, $1,204.00, and $1,199.00. The metal made a low at $1,203.40. If the prices break below $1,200.00, gold can extend its fall to $1,195.00 and even $1,185.00. A daily close below $1,185.00 leads to $1,170.00, $1,167.00, and $1,150.00. We recommend fresh selling below $1,199.00 with the rest of targets. The weekly 61.8 fib level is set at $1,198.75 and the 80.0 fib level is placed at $1,1667.00.
On the h4-chart, the prices are closed and trading above hourly moving averages. The prices are expanding lower swings on the hourly chart. Intraweek resistance exists at $1,227.00. Intraday resistance exists at $1,222.00.
Resistance: $1,212.00, $1,217.00, $1,227.00.
Support: $1,199.00, $1190.00, $1,185.00.
Selling below $1,198.00.
Uitgevoerd door, Analytische expert
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