Gold Forecast: Gold Finds Support At A Major Fibonacci Level

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During Monday's trading session, gold markets saw a lot of noisy behavior. However, it was Presidents' Day in the United States, so electronic trading was limited. Despite this, we still managed to find buyers, and it's likely that gold is getting ready to take off again. If that's the case, we will likely challenge the 50-Day EMA sitting just above. Breaking above that opens up the possibility of targeting the $1900 level, where we had seen a lot of selling pressure. Whether or not we can break above that level is another question, but it would be an interesting target for buyers. Gold Technical Outlook

• The 38.2% fibonacci level has offered quite a bit of support, and we formed a nice hammer for the Friday session.
• However, if we break down below the hammer from Friday, it opens up the possibility of a move down to the 200-Day EMA, which is closer to the $1810 level.
• Underneath that, we have the 50% Fibonacci level, which is basically at $1800 and will attract quite a bit of attention.

One thing that has many traders concerned is the drastic sell-off from the highest point. However, traders should also pay close attention to the US dollar since the negative correlation with gold is still there. Ultimately, a lot of this will come down to what the US dollar does against multiple currencies. Traders should keep in mind that there has been a massive move higher in gold, so this pullback will look attractive to a lot of value investors as well.

In summary, during Monday's trading session, gold markets were noisy, but there were still buyers. It's likely that gold is getting ready to take off again, and if that's the case, we will challenge the 50-day ema sitting just above. Breaking above that level opens up the possibility of targeting the $1900 level. The 38.2% Fibonacci level has offered support, and we formed a nice hammer for the Friday session. If we break down below the hammer from Friday, it opens up the possibility of a move down to the 200-Day EMA. Traders should keep a close eye on the US dollar, which has a negative correlation with gold. A lot of this will come down to what the US dollar does against multiple currencies, and there has been a massive move higher in gold. This pullback will look attractive to value investors.

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