FxWirePro: Gold Dips Towards Lower Range But Bias Remains Bullish
- The yellow metal traded higher on Monday, as dollar declined slightly and European shares dipped following no deal between oil producers to cut oil output which sent oil prices down.
- Gold prices have come under severe pressure recently by speculation the US Federal Reserve could rise its interest rates in the coming months, but last week’s poor US inflation figures have put pressure on Fed's to rethink on rate hike plan.
- Any downside is expected to be limited as the support level located at 1206 is likely to hold the bears from falling further below and bring a rebound back towards higher levels.
- To the upside, the strong resistance can be seen 1237, a break above this level would expose the commodity towards 1243 levels.
- To the downside immediate support can be seen at 1228, a break below at this level will open the door towards 1218 levels. Support levels: S1-1228, S2-1218, S3-1206 Resistance levels: R1-1237, R2-1243, R3-1252