Gold retraced strongly following the move to the 2000 price level. Forming a head and shoulder pattern, Gold traded down to the 1938 price level which coincides with the 61.8% Fibonacci retracement price level
The next directional move on Gold is going to be highly dependent on the volatility of the DXY, especially with the FOMC interest rate decision due.
In the short term, if the price breaks below 1933 (the 61.8% fib level), gold could continue trading lower, down to the key support level of 1914.
However, in the medium term, anticipating further DXY weakness, look for Gold to bounce either at the fib level or the 1914 support level to continue with the uptrend to retest the 2000 price level again.
The next directional move on Gold is going to be highly dependent on the volatility of the DXY, especially with the FOMC interest rate decision due.
In the short term, if the price breaks below 1933 (the 61.8% fib level), gold could continue trading lower, down to the key support level of 1914.
However, in the medium term, anticipating further DXY weakness, look for Gold to bounce either at the fib level or the 1914 support level to continue with the uptrend to retest the 2000 price level again.
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