As it was expected, the 61.8% Fibonacci retracement level at 1,278.96 appeared to be too strong barrier to be crossed from the first attempt. Accordingly, the pair made a rebound but recovery of the gold was hindered by the slipping 55-hour SMA, which pushed it back to weekly S1 at 1,283.66. At the moment, the southern side remains too strongly protected by the above indicators to be successfully bypassed. The only chance to rapidly slip to the bottom is to gain an impulse from some significant fundamental event. However, there are no such types of events in economic calendar scheduled for today. In contrast, an uneasy geopolitical situation in the Pacific region is expected to continue to motivate investors to transfer their funds in less risky assets, such as gold.
