Gold advanced modestly higher to halt its slump of losses. Gold prices trades to the high at 1,110 on Tuesday, after selling off sharply and hitting a five-year low previously. Price traded as high as 1,110 during the London session but failed to push any further. The market certainly has broken down below pretty significant support as a whole and as a result we feel that the market will continue to go lower given enough time. That said, the market appears as if it is going to offer selling opportunities off short-term charts rallies.
Following the dramatic moves on Monday, the precious metal seems content to sit back and re-assess the damage on Tuesday as price traded back through the 23.60% Fibonacci Retracement mark to hit the high at 1,110. Price did turned back around though, breaking below the 23.60% Fibonacci Retracement to close the day at 1,101. Importantly, it is hard not to notice that candles are trading firmly below the 20, 55 & 200 MA lines, which leads to the opinion that the markets are continuously offering selling opportunities in the short-term.
Gold recovered in strength on Tuesday as price bounce off their lows and recover to the high at 1,110. Going into the day close, signs of a short-term bottom seems to be forming in as candles steadied itself within the middle range of 1,096 and 1,106. As the technical formation suggest, it seems that the gold bulls are trying to regroup for a decent rally. Stillm we add that there is still strong selling interest on upticks. Expected trading range for today is between 1,086.00 support and 1,106.00 resistance.