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Gold storms to record high before surrendering intraday gains
Gold has been in a steep uptrend since November 10, when the price bounced off the crucial 200-day simple moving average (SMA). On Monday, bullion recorded a fresh all-time high of 2,144 before erasing all its intraday rally, with the price reversing back below its previous record peak. Given that the momentum indicators are starting to ease from overbought conditions, gold could pull back towards 2,021, which is the 78.6% Fibonacci retracement of the 2,079-1,810 downleg. Sliding beneath that floor, the price may challenge the 61.8% Fibo of 1,976. Even lower, the 50.0% Fibo of 1,944 could provide downside protection. ... (full story)