Gold Futures Market View — Gold futures are trading under pressure, with the most active April 2019 contract currently down $1.60 and fixed at $1319.50.
However, it is the low that has generated the most interest on a technical basis. Yesterday low came in at $1312.70, which is $.20 above the .23% Fibonacci retracement level. The data set used for this Fibonacci retracement is quite extensive.
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It begins in December 2016 when gold was trading at $1124 per ounce, up to the highest trading point of 2018 at approximately $1370 per ounce. Therefore this data set covers the entire range of gold over the last three years.
While it is quite obvious that gold is under pressure the vast majority of decline is directly attributable to dollar strength rather than market participants bidding the precious yellow metal lower.
Market participants favoring the sell side of the market. Our technical studies currently indicate that there is support for gold futures at $1312, the .23% Fibonacci retracement level.
Currently the resistance level for gold is based upon last week’s high of $1330 per ounce, and the major level of resistance continues to be $1370 per ounce, which is the highest trading point that gold traded to on multiple occasions beginning in September of 2017, and on multiple occasions last year.
With the Chinese lunar New Year’s about to begin some analysts believe that demand will decrease as the lunar new year celebration commences and markets close for an entire week