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Gold slips below 4,200 after 4,230 Fibonacci level fails
Bullion fell nearly 2% in Asian trading, with the next technical tests at 4,113.82 and 3,937.19 to 3,942.43.
Gold broke below 4,200 on Monday after trading took out the 4,234.68 support area and the 61.8% retracement at 4,230.70, a level that previously helped support the case for a more durable rebound, Action Forex reported.
The outlet said the loss of the 4,230 Fibonacci threshold shifts gold from an ongoing oil-to-rates headwind to more serious technical damage, with the move weakening the bullish read on August’s rebound.
Action Forex identified 4,113.82 as the next momentum test and 3,937.19 to 3,942.43 as a larger structural level to watch.
The outlet also cautioned that a stronger signal would come from a daily close below 4,230, since Monday’s session was still underway when the break occurred.
Latest closeGold $4,320.50 ▲0.5%