Gold turns negative, slips below $1280

May 5, 2016

Gold has now turned lower, extending its weakness for fourth consecutive session, sliding further below $1280 level to currently trade near $1278, though off day's low of $1274.50.

Extending its reversal from $1300 handle, gold prices on Wednesday fell to as low as $1272 before recovering a bit, on mixed US economic data, to $1279. On Thursday, too, gold saw some initial buying interest that lifted the metal to $1283 but resumed its corrective move and dropped to an intraday low near $1274.

From technical perspective, $1280-82 area represents a key confluence resistance area comprising of 23.6% Fibonacci retracement level of $1207-$1303 up-swing and a short-term descending trend-channel resistance formation on hourly chart. Hence, clearing this immediate strong resistance would be key for enabling the metal to resume its prior appreciating move.

Technical levels to watch

On the downside, Wednesday's low level near $1272, closely followed by $1266-65 confluence region, are immediate support levels. The $1266-65 support constitutes 38.2% Fibonacci retracement level and the ascending trend-channel support. Hence, a decisive break below this strong support seems to accelerate the fall immediately towards 50% Fibonacci retracement level support near $1255 region.

On the upside, $1280-82 area remains immediate resistance to watch for. On decisive break-through this strong resistance, the metal seems to make a fresh attempt to move back towards $1300 psychological mark resistance.

Publication source
HYCM information  HYCM reviews

February 24, 2017
Gold surges to major $1250 resistance as uncertainty prevails
Gold surged Thursday on a breakout of its previous consolidation to hit and slightly exceed major technical resistance at $1250, a level not seen since early November...
February 24, 2017
Dollar falls as peso and gold rally
The U.S. dollar was the weakest currency yesterday as surprisingly, the Mexican peso rallied, rising 1.22% over the day against the greenback...
February 23, 2017
U.S. dollar muted to Fed minutes
The U.S. dollar index was flat yesterday after the Federal Reserve published the meeting minutes from the January 31 -February 1 monetary policy meeting...

Cms Trader Rating
 FXTM Rating
XM Rating
Tickmill Rating
Grand Capital Rating
FX Giants Rating

OptionBit Rating
First Binary Option Service Rating
24option Rating
Dragon Options Rating
TopOption Rating
365BinaryOption Rating