Gold $1311.90 UP $6.00

MKS: Fibonacci Level, Moving Averages Become Support For Gold

Thursday August 7, 2014 7:35 AM

Gold is now above a Fibonacci level and two widely followed moving averages that may offer nearby chart support following Wednesday’s sharp rally on safe-haven buying as Russia-Ukraine geopolitical tensions picked up again, says MKS (Switzerland) SA. Chinese buying sent gold marginally higher during Asian trading hours, the firm continues. “Short term, we will be looking for gold to hold firstly above $1,304.50, which is the 38.2% retracement level of the recent move lower, followed by the 50 DMA and 100 DMA both currently sitting around USD $1,296,” MKS says. “On the resistance front, $1,320 is where the 23.6% level sits and following this the July high of $1,345 would be targeted.” Around 7:20 a.m. EDT, spot gold was up $1.95 to $1,307.40 an ounce.

By Allen Sykora of Kitco News; asykora@kitco.com