Fundamental : The Gold is trading lower in yesterday's mid-session as the US Dollar strengthens and the risk for appetite increases. The Gold still managed to keep within its 04 January range; however, the bullish or bearish scenario will depend on the trader reaction to the short-term pivot. Meanwhile, the Federal Reserve proposed to pause future rate hikes until the global economy has improved and the financial market has stabilized.
Technical analysis : The main trend depends on the daily swing chart. However, the momentum at the upside has slowed considerably since the closing price reversal was established on 4 January.
A trade of 1300,40 dollars will negate the closing price reversal and signal a resumption of the upward trend with the next major target of 1312,30 dollars. A move up to $1278.10 confirms the price reversal. This could lead to a sharp break to a minimum of $1268.50
The market is currently trading within a large retraction zone between $1285,70 and $1312,30. The very short term range is between $1300.40 and $1278.10. Its level or pivot of 50 percent is $1289.20. The market appears to be trying to establish a base of $1285.70 to $1289.20.
Bullish condition : The overtaking and maintenance of a move of more than $1289.20 indicates the presence of buyers. If this generates enough momentum upside down, then we could see a $1300.40 return. Taking this level out could lead to an acceleration to the $1312.30 level of the Fibonacci.
Technical analysis : The main trend depends on the daily swing chart. However, the momentum at the upside has slowed considerably since the closing price reversal was established on 4 January.
A trade of 1300,40 dollars will negate the closing price reversal and signal a resumption of the upward trend with the next major target of 1312,30 dollars. A move up to $1278.10 confirms the price reversal. This could lead to a sharp break to a minimum of $1268.50
The market is currently trading within a large retraction zone between $1285,70 and $1312,30. The very short term range is between $1300.40 and $1278.10. Its level or pivot of 50 percent is $1289.20. The market appears to be trying to establish a base of $1285.70 to $1289.20.
Bullish condition : The overtaking and maintenance of a move of more than $1289.20 indicates the presence of buyers. If this generates enough momentum upside down, then we could see a $1300.40 return. Taking this level out could lead to an acceleration to the $1312.30 level of the Fibonacci.