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Technical Analysis

Gold Analysis: Finds Support Below 1,250

Typography

'The gold rally was overdone and there was a correction on Thursday.' – Brian Lan, GoldSilver Central (based on Reuters)

Pair's outlook

On Friday morning, the yellow metal's price was regaining some of the losses, which were suffered during Thursday's trading session. During that day the bullion retreated down to the levels below the 1,250 mark, where the 20, 55 and 200-day SMAs are located at. The combined support of these levels of significance managed to stop the fall of the commodiy price. Afterwards a rebound began, which has passed the resistance of the 50.00% Fibonacci retracement level at 1,249.16 level. Due to these factors combined it can be assumed that the bullion will attempt to reach the weekly R3 at 1,261.72 once more.

Traders' sentiment

Traders are neutral in regard to the metal. However, 70% of pending commands are to buy the bullion.

About the Contributor
Dukascopy Swiss FX Group
Author: Dukascopy Swiss FX GroupWebsite: http://www.dukascopy.com/
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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