Overview:

Since our last analysis, gold has been trading sideways around the price of $1,200.00. According to the daily time frame, we can observe demand in a volume above the average, but the price action was weak (weak demand). I placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 61.8% at $1,208.00 (held few times). I placed Fibonacci expansion to find potential bearish objective points and got Fibonacci expansion 61.8% at $1,185.00 and Fibonacci expansion 100% at $1,170.00. Major resistance is around the level of $1,220.00. Only if the price breaks that level, we may see a strong bullish movement. The short-term trend is neutral.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,206.40

R2: 1,207.06

R3: 1,208.15

Support levels:

S1: 1,204.26

S2: 1,203.60

S3: 1,202.53

Trading recommendations: Be careful when buying gold at this stage since our Fibonacci retracement 61.8% was successfully held.