Today we would look at one of the safe-haven trading instruments, gold. With all the changes in currency prices this week and investors’ somewhat revived faith in the dollar, the value of gold was definitely affected.
The precious metal dropped in price to reach 1299.20, a level that corresponds to the 38.2% Fibonacci that characterized the previous movement of the price, when it went from 1204.81 up to 1357.53. The price is currently positioned in a downward price channel, so we can expect with confidence that the gold will slide further down. We forecast that this bearish movement will lead the gold to about 1281.17 in the near future.
However, we need to be alert, on the off-chance that the price of gold starts increasing again. If it does, and if it overcomes the level of 1321.49, then we can certainly speak of a resumption of the bullish trend that prevailed on the market when the whole issue between the United States and North Korea began.
In general, today we should see the price of gold move in a narrow range between the nearby support at 1281.17 and the resistance level of 1315.
