Michael_Macdonald-XATSUK

Gold XAUUSD at risk of a short-term corrective pullback

FX_IDC:XAUUSD   Gold Spot / U.S. Dollar
Gold prices have failed to extend the December 2016 rally. Prices are settling back from the USD1263.80 monthly high of 27 February, as bullish short-term studies unwind.

Focus is turning to the USD1216.80 low of 15 February, with the USD1210, (38.2%) Fibonacci retracement just beneath here. A break to congestion around USD1200 is looked for, as overbought momentum studies unwind, with risk of a test of the USD1193, (50%) retracement before the rising Tension Indicator (not shown) helps to stabilise prices.

A close above USD1263.80 is needed to reinstate the bullish trend , and open up the USD1278. 40 Fibonacci retracement . However, immediate gains are expected to fade beneath here, as short-term profit-taking develops.