Tuesday’s price range has the most important price levels
After a new record high of $ 3,058 reached last Thursday, gold fell a low point of $ 2,999 on Friday. So far, that remains the low point of the Bearish pullback, which is not much. Near the record high for gold, the 200% extended Retracement of the late October Bearish correction is $ 3,043. There seem to be two basic scenarios that are now developing in gold.
Either the bull trend continues to a higher target, or a bearish correction continues. A higher daily high and higher layer nowadays showed the power in the short term after a very small decrease. But a bearish reversal intraday at the 61.8% retracement and the subsequent decline suggests the possibility that a continuation of the withdrawal can follow.
Above $ 3,058 goals $ 3,080
An increase in high of $ 3,036 today will show strength, but gold should come last Friday from $ 3,047 before there is an indication that gold can challenge the recent high for a deeper withdrawal. If gold can then exceed the record high, it must be given the opportunity to approach the next higher target around $ 3,080, which shows the confluence of a few Fibonacci levels. Moreover, there is a top trend channel line (green highlight) that can present resistance a bit above the higher price target.
38.2% Fibonacci racement and 20-day MA supporting
On the other hand, a drop below the low point of Tuesday of $ 3.007 indicates a likely deeper withdrawal, while it is spotted on a drop below the layer of Friday and the weekly layer at $ 2,999. The initial goals of the disadvantage include the 38.2% Fibonacci racement at $ 2,972 and the earlier trend high at $ 2,956. Note that the 20-day MA has been merged with that earlier high and that it continues to rise. The 20-day line is at $ 2,955 and it also presents an important withdrawal goal in the short term.
Look for a look in all the economic events of today Economic calendar.