Gold hovering around 61.8% Fibonacci level

UNITED STATES July 28 2017 9:28 PM

NEW YORK (Scrap Register): Spot gold is now hovering around a key Fibonacci retracement, said Alex Thorndike, senior precious-metals dealer with MKS (Switzerland) S.A. 

The metal is also back above its 50- and 100-day moving averages after dipping below early Wednesday. The U.S. dollar continued to fall, thereby helping gold, after a meeting of the Federal Open Market Committee on Wednesday. 

“The metals held onto their overnight gains during the Asian session on Thursday, although there was a definite pause in the action post FOMC,” Thorndike added.

Interestingly there was some light follow-through Chinese buying on the day despite the higher prices, as well as some TOCOM bids, which kept spot gold steady.

As of 9:44 a.m. EDT, spot gold was up $1.60 to $1,261.95 an ounce. It was above $1,265. 

“Gold's very impulsive rise throughout July now sits it above the 61.8% Fibonacci retracement (June-July decline) at $1,262; however, it does appear technically there will be some resistance between $1,265-75,” Thorndike noted. 

The 50-day moving average sits at $1,250, the 100-day at $1,249.55, and the 200-day at $1,229.50.