Gold – Re-test of 38.2% Fibo likely
Fibonacci retracement drawn from Dec low of 1046.54 and July high of $1375 puts 38.2% retracement at $1249.62.
Despite Gold’s rebound from the low of $1241.50 leading to bullish price RSI divergence on hourly and 4-hourly, the subsequent struggle in Asia at 5-DMA hurdle suggests a break below Asian session low of $1256.30 could lead to a re-test of 38.2% Fibo of $1249.62.
On the higher side, $1275 seem possible if the metal holds above 10-DMA in early Europe.
Despite Gold’s rebound from the low of $1241.50 leading to bullish price RSI divergence on hourly and 4-hourly, the subsequent struggle in Asia at 5-DMA hurdle suggests a break below Asian session low of $1256.30 could lead to a re-test of 38.2% Fibo of $1249.62.
On the higher side, $1275 seem possible if the metal holds above 10-DMA in early Europe.
