Gold has been trading downwards. As we had expected, the price tested the level of $1,193.00. The short-term trend is beairsh. The price broke the strong support cluster at $1,201.00 and we may expect further bearish direction. We can observe a sign of weakness (SOW) after a breakout of trading range, which signals that buying looks risky. I have placed Fibonacci retracement to find potential support. I got Fibonacci retracement 61.8% at the level of $1,192.00 (on the test). If the price breaks the level of $1,192.00 in a high volume, we may see the level of $1,178.00 (demand zone) on test.
Daily Fibonacci pivot points:
Trading recommendations: Be careful when buying gold below the price of $1,225.00 and watch for selling opportunities after retracement.
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