Monday, 8 January 2018

GOLD Correction to reinforce bulls

Spot Gold started the new week in smooth mood, having quite tight daily range. The US dollar surprised markets with strength after poor US jobs data, released last Friday that was not affected by the expected rate hikes approaching this year.
As seen on the four hour time frame, the XAU/USD pair is developing well above its bullish moving averages. RSI and stochastic got out of their extreme overbought areas and had lost directional strength, but yet remain on higher levels. Given all above it seems that this corrective phase is going to call back the bulls. The precious metals stands above the 23.6% Fibonacci retracement of latest upleg (at $1305) and the initial support at $1313 (Friday’s low) is untouched by the bears. A deeper correction  might follow only in case of testing the 38.2% of same Fibo at $1292, but not lower. 



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