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Spot Gold is Attempting to Find its Post-Election Low


It is usually not a coincidence when a market declines to, and reverses from, both a significant support line and a major Fibonacci support zone (62%).

Such is the case in spot GOLD during the past 24 hours, as the price structure pressed to a post-election low of $1171.74-- within the support range of 62% Fibonacci support of the entire Dec 2015 - July bull phase at $1172.70, and at the vector support line off of the Dec-Jan lows, which cuts across the price axis today in the vicinity of $1170.00.

Spot Gold has since ricocheted from $1171.74 to an intraday high at $1193.26.

All eyes now are on $1184.05 and $1190.76.

A close above the former will represent a simple, but meaningful, upside-reversal session, while a close above the latter will put in a potentially more significant key upside reversal.

Meanwhile, DXY (U.S. Dollar has the right look of near-term upside exhaustion, accompanied by a potential downside reversal in the aftermath of its 6.4% vertical 12-session assault in reaction to the Trump election victory.

If weakness does develop, it will diminish some of the intense strong-Dollar headwinds impacting the precious metals since election night.

That said, any weakness in DXY should be contained above 101-100 support ahead of additional upside pressure. Only a decline that breaks and sustains beneath 99.80 will begin to compromise the bigger picture upside breakout.

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