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Gold rally could be short-lived
Gold continues to move higher following Friday’s low of $1319, with overnight losses turning into the green this morning. However, with the price having broken below the $1321 support level on Friday, it points towards the potential for this current rally to be a retracement rather than a bullish reversal.
With that in mind, look at the 61.8% and 76.4% retracements as a potential area for the price to turn lower once more. A break above $1348 would negate this view. Ultimately this market is heavily reliant upon fundamental and news driven factors at the moment. As such, keep an eye out for Chinese and US comments over trade.
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