Article by: ETO Markets
The corrective decrease in the price of gold has halted, in part because of the heightened geopolitical concerns that underpin the traditional safe-haven. Ukraine launched an attack on a major oil refinery in Russia on Tuesday, using dozens of drones and missiles. The strike aimed to breach the land borders of the world's largest nuclear power by using armed proxies. The refinery suffered significant damage.
The 23.6% Fibonacci Retracement level and the March 7 low, which correspond with the recent rise from the February 14 low of $… to the all-time high of $…, provide strong support for the gold price slightly above ...
In order to continue the upward trend toward Tuesday's high of $…, which will be the barrier for a retest of the all-time high of $…, defence of the latter is imperative. The psychological level of $… and the $… barrier represent the next important upside targets.
As an alternative, gold sellers could flex their muscles for a test of the static support at $… in the event of a prolonged break below the previously noted support level of $... The 38.2% Fibonacci level of the same rise, or $…, is the final line of defence for buyers of gold.
