Since our last analysis, gold has been trading downwards. The price tested the level of $1,202.45. Our support at the price of $1,196.00 is on the test again. In the daily time frame, I found a neutral bar with a very low spread. Supply is overcoming demand and buying gold at this stage look risky. According to the H4 time frame, I found buying climax in the background, which is a sign that buying looks risky. I have placed Fibonacci expansion to find potential support levels and downward targets and got Fibonacci expansion 61.8% at the price of $1,195.00, Fibonacci expansion 100% at the price of $1,168.00 and Fibonacci expansion 161.8% at the price of $1,123.00. Watch for a potential breakout of $1,191.00 to confirm further downward side.
Daily Fibonacci pivot points:
Trading recommendations: Be careful when buying gold and watch for potential selling opportunities on rallies.