Type: Bearish ReversalKey Levels:Resistance: 1889.8Pivot: 1880.5Support: 1853.4Preferred Case:Prices are at a recent high and also a strong graphical resistance. We see the potential bearish reversal from our Pivot at 1876.7 in line with 100% Fibonacci extension towards our area of 1st support at 1853.4 in line with 127.2% Fibonacci Projection and 23.6% Fibonacci retracement. Our bearish bias is further supported by RSI being being at levels where dips previously occurred.Alternative Scenario: If prices continues its uptrend, they can potentially reach our 1st resistance at 1889.8 in line with 200% Fibonacci projection.Fundamentals:As markets are pricing in the recent rallies, we might expect short term pullback on prices of the commodity before the PPI data release tonight. PPI will give insight as to the potential magnitude of rate hikes, affecting the prices of Gold. On the side, we might still expect the rally on Gold prices to continue amidst (Russo-Ukrainian) diplomatic talks, as the metal is known to be a “safe haven” during political instability.
Source: Tickmill
