August Fibonacci Gold Forecast suggests further bullish XAUUSD bias towards 88% true Fibonacci wave zone
1 August, Gold analysis - Gold has been on a bullish run during the past 3 weeks. Putting the fundamentals to the side, XAUUSD fund support at its monthly support line and 20 week SMA. Meanwhile, for the new month, August Fibonacci Gold Forecast suggests further bullish XAUUSD bias. Monthly bullish XAUUSD outlook has an immediate target right on 88% true Fibonacci wave zone at $1277 per ounce, and possible extension legs on $1297 and $1344 levels.
August Fibonacci Gold Forecast
According to our monthly August Fibonacci Gold Forecast, bullish XAUUSD bias are getting close to their resistance zone. XAUUSD bullish reversal has been running for the past 3 weeks with 660 pips of upwards development. Though, I am not much of harmonics supporter, valuable metal has been forming an inverse head and shoulder formation. Based on H&S formation, Gold should find its main resistance at $1297 zone, in line with our 2nd resistance level.
.tftable {font-size:12px;color:#fbfbfb;width:100%;border-width: 1px;border-color: #686767;border-collapse: collapse;}
.tftable th {font-size:12px;background-color:#171515;border-width: 1px;padding: 8px;border-style: solid;border-color: #686767;text-align:left;}
.tftable tr {background-color:#2f2f2f;}
.tftable td {font-size:12px;border-width: 1px;padding: 8px;border-style: solid;border-color: #686767;}
.tftable tr:hover {background-color:#171515;}
| Type | Level 1 | Level 2 | Level 3 |
|---|---|---|---|
| XAUUSD Resistance | 1277 | 1297 | 1344 |
| XAUUSD Support | 1265 | 1260 | 1254 |
Fundamentals support bullish XAUUSD bias
Fundamentals support bullish XAUUSD bias as well. The North Korean ICBM testing has brought the tensions up in the eastern hemisphere as the US has given warning to China. Meanwhile, the US is in an internal political turmoil.
Combining mainstream fundamentals, we can also conclude that these geopolitical developments suggests instability. Instability = higher gold prices!
Bullish XAUUSD bias & targets
At the moment, the yellow metal is trading in a narrow range of $1270-$1265 on intraday H1 time frame. This consolidation move came immediately after Friday's $13 bullish XAUUSD move. However, technical and fundamental indicators suggest that this consolidative move is just temporary.
The first key intraday resistance is at $1277 level. The following key resistance is at $1297 level, corresponding with the 110% True Fibonacci wave level. Meanwhile, key intraday support is right on $1265 level. The following support levels are at $1261 and $1254 levels respectively. Our preference is to follow the trend. Of course it is easier said than done! Thus, we will look for a break above the $1270 zone. A surge above this level will trigger a further acceleration to the upside as per the support and resistance table above.
Attention: Gold is a safe heaven asset! Traders should expect strong Gold volatility in times of crisis or instability.