Gold revisits 38.2% Fib hurdle in Asia

Pound sell-off on hard Brexit fears triggered risk aversion, leading to an uptick in gold prices. The metal rose to $1204.76 (38.2% retracement of Nov 9 high - Dec 15 low) in Asia.

Trades above $1200/Oz

At the time of writing, the metal was trading around $1202/Oz levels. Prices had dipped to a low of $1187.50 on Friday before the disappointing US retail sales data pushed prices back to $1200 mark.

Moreover, the retail sales number showed that Trump optimism (sentiment) is not really leading to strength in the hard data (consumption).

The metal remains at the mercy of the Brexit related news flow today.  Another round of GBP selling and gold strength cannot be ruled out in early Europe. The metal could perform, especially well in Sterling terms.

Gold Technical Levels

A daily close above $1204.76 (38.2% fib) would open the doors to $1214 (Nov 23 high). On the other hand, a failure to take out $1204.76 followed by a break below the psychological mark of $1200 would expose support at $1181.50 (50-DMA).