Gold corrects to 23.6% Fibo on moderate risk-on

Moderate risk-on in Asia pushed safe haven gold down to $1320.87, which is 23.6% Fibo retracement level of the rally from May low to June high.

Trades below hourly 50-MA

At the time of writing, the metal traded just below the hourly 50-MA located at $1322.14 levels. Prices witnessed correction yesterday even though the equity markets across the globe extended Friday’s risk aversion.

Prices dropped to a low of $1317.43 levels yesterday before recovering to a high of $1326 in Asia, only to fall back to $1320/Oz levels.

The metal could continue to take cues from the equity markets and the dollar index ahead of the US GDP data release.

Gold Technical Levels

Acceptance below $1320.87 (23.6% of May low-June high) would add credence to break below hourly 50-MA and open doors for a slide to $1315.63 (June 16 high). On the other hand, breach of Asian session high of $1325.96 could yield a cut above 1333.62 (yesterday’s high) and a rise to $1358 (Friday’s high).