Gold Bullion testing higher levels as dollar wanes
Direction: Long (BUY)
Entry: $1230
Stop: Loss: $1216
Take Profit: $1245
Take Profit: $1250
The dollar continues to be on the back-foot as economic data released out of the US continues to disappoint. With the weakening greenback, commodities have recovered from their recent lows with higher targets for precious metals are insight. Gold has advanced steadily towards a key resistance level of $1230/ounce (this is also the metals 200day moving average). A close above the $1230 will open targets of $1245(which coincides with the 50% Fibonacci retracement level the blue line below) and $1250. If the yellow metal fails to close above $1230, it is likely to retrace back to the 38% Fibonacci retracement level of $1216. Traders could look at a buy of the yellow metal at $1230, with a Stop Loss of $1216 and a Take Profit of $1245.
Source: Bloomberg 2017
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