Gold Analysis
Afternoon Session: Gold failed to sustain above 62250, forming a bearish pattern, heading for 61.8% fib level?
Highlights:
- GOLD is currently revealing a concerning bearish pattern.
- The next target would be the 61.8% Fibonacci level, situated at 60711.
- USD/INR pair trading within a range between 82.80 and 83.40.
Overview:
The Richmond Manufacturing Index slowed in December as components such as new orders, employment and shipments all edged lower. Firms remained generally pessimistic about local business conditions while continuing to report declining backlogs. Should manufacturing activity continue to deteriorate further in January, the dollar could come under some short-term selling pressures and potentially lift gold prices.
Outlook:
GOLD is currently revealing a concerning bearish pattern. If prices close below the 23.6% Fibonacci level, currently at 62297, it could trigger a substantial downturn. The next target would be the 61.8% Fibonacci level, situated at 59370, suggesting a potential bearish trend. Traders should closely monitor this critical support level for a clearer indication of market sentiment and consider adopting a cautious stance given the impending downside risk.
Support and Resistance Levels:
