Sasha Singh
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Key Resistance at 1327.76 Might Pull Down Gold

(XAUUSD : 4 Hour Chart)

Gold finally broke out from the falling resistance trend line giving a bullish signal on the 4 hour chart. Seems like investors continue to weigh the Fed comment that the central bank will keep the interest rate low for a foreseeable period boosting the demand for safe haven. However the Consumer Confidence and New Home Sales data coming out at 10:00 AM EDT might change the direction of Gold. Tensions in Iraq is also boosting the demand for safe haven.

(XAUUSD : Daily Chart)

On the daily chart the commodity is heading towards the resistance at 1327.76 and might come down from this level. However if Gold breaks this resistance it might surge up to 1342.24. Inserting the Fibonacci Retrenchment levels on the chart we can see that the pair is currently trading above the 50 fib level so the next resistance level it should find at 61.8.However if Gold falls below the 50 fib level the pair will find the next support at 38.2.