Overview:

Gold has been trading downwards since our last analysis. The price tested the level of $1,217.00 in a high volume. We can observe demand in a high volume but weak price action in the daily time frame. The short-term trend is bullish. The daily resistance at the level of $1,224.00 held successfully. If the price breaks the level of $1,224.00 in a high volume and strong price action takes place, we may see possible testing at the level of $1,250.00 (Fibonacci expansion 100%). Be careful when selling and watch for potential buying opportunities on dips. I found strong support area around the levels of $1,210.00-$1,214.00. I had placed Fibonacci retracement to find support levels. I got Fibonacci retracement 38.2% at the level of $1,211.00, Fibonacci retracement 50% at $1,205.00 and Fibonacci retracement 61.8% at $1,200.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,231.00

R2: 1,233.60

R3: 1,237.75

Support levels:

S1: 1,222.80

S2: 1,222.60

S3: 1,216.35

Trading recommendations: Be careful when selling and watch for potential buying opportunities (buy on dips).