Gold Price Recovery Brings Test of Former Support Zone
The price of gold approaches the former support zone around the August low ($1885) as it clears the opening range for October.
Gold Price Outlook
The price of gold appears to have reversed ahead of the February low ($1805) as it carves a series of higher highs and lows, with a break/close above the $1886 (23.6% Fibonacci extension) to $1896 (61.8% Fibonacci retracement) region raising the scope for a test of the 50-Day SMA ($1903).
Nevertheless, the price of gold may track the negative slope in the moving average if it continues to trade within the descending channel from earlier this year, and failure to break/close above the $1886 (23.6% Fibonacci extension) to $1896 (61.8% Fibonacci retracement) region may curb the recent rebound in bullion as the former support zone around the August low ($1885) offers resistance.
A move below $1843 (50% Fibonacci retracement) may push the price of gold back towards the monthly low ($1811), with a breach below the February low ($1805) opening up the $1789 (38.2% Fibonacci retracement) area.
Gold Price Outlook
The price of gold appears to have reversed ahead of the February low ($1805) as it carves a series of higher highs and lows, with a break/close above the $1886 (23.6% Fibonacci extension) to $1896 (61.8% Fibonacci retracement) region raising the scope for a test of the 50-Day SMA ($1903).
Nevertheless, the price of gold may track the negative slope in the moving average if it continues to trade within the descending channel from earlier this year, and failure to break/close above the $1886 (23.6% Fibonacci extension) to $1896 (61.8% Fibonacci retracement) region may curb the recent rebound in bullion as the former support zone around the August low ($1885) offers resistance.
A move below $1843 (50% Fibonacci retracement) may push the price of gold back towards the monthly low ($1811), with a breach below the February low ($1805) opening up the $1789 (38.2% Fibonacci retracement) area.
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