VOT Research Desk
The price of gold is making a tentative comeback after a sharp decline caused by the hawkish monetary policy outlook set by the European Central Bank (ECB) and the US Federal Reserve (Fed) at their separate monetary policy meetings.
The Fibonacci 38.2% one-week and Fibonacci 236.6% one-day convergence at $1,783 is where the gold price is attempting to build its rebound.
A solid break above the latter will give the price recovery of gold further oomph and open the door for a test of the formidable barrier at roughly $1,788.
The preceding month’s high, SMA200 one-day, Fibonacci 38.2% one-day, and SMA10 one-day all intersect at that level. The Fibonacci 61.8% one-day and SMA5 one-day intersect around $1,793, which is the next substantial upside barrier.
The Fibonacci 23.6% one-week, which is at $1,777, is a strong support level in contrast; if it is broken, the previous day’s low of $1,774 would be retested. The previous week’s low at $1,766 is the last line of defense for gold bulls.
