December Comex gold futures retreated some ground just before the cash market opening. Gold could be affected by some negative pressure in case U.S. Treasury yields are further extending the rising path.
In case the market manages to recover and closes higher today, then this will suggest in that gold traders are expecting the December Fed rate hike.
The primary trend is on a decline according to the D1 swing chart. This trend will turn up on a trade through $1233.10. The major retracement zone is from $1218.50 to $1179.30. Gold is currently trading inside this zone.
A longer-term trading strategy may see this as an opportunity to buy value, so bearish traders need to be careful about selling weakness inside this zone.
In case the selling pressure is solid to take out today’s intraday low at $1201.30, this could create a high losing trend momentum, which could challenge the major Fibonacci level at $1179.30.
The angle at $1226.30 will take the role of resistance on the first test, but it is also the trigger point for acceleration into $1233.10 price point.