Wednesday, 6 July 2016

Gold price in GBP sterling has retraced 61.8% of its losses and more.

I just posted this on www.goldtadise.com in reply to Mark's post.

Mark was looking at gold's move to $1369 and saying that in USD that is very close to a 38.2% retracement of the entire downmove from $1900+ to $1045 and possibly a point for resistance. I replied:


It is now $1368.70 / $1369.70 Bid/Ask on Kitco, right where your lines meet (1369.90).
High so far today was $1371.90, low $1364.00 (6 July 2016 10,00 BST UK time).
I guess you are looking at the 38.2% retracement of the entire downmove from $1920 to $1045 approx coming in around $1369, approx.
I am looking at gold in GBP and I can tell you that the retracement of the downmove is now more than 61.8% in sterling. Not that it is the most important price but it is interesting to note.

Actually I have taken a closer look and it is very close to 61.8% in sterling. Close enough still to be resistance. Also, today's sterling price (£1057) has just broken above the upper end of the support zone during the market topping process (2011-2013) which was from about 960 to 1015 BP. Last week's close price was about 1013 but today's is 1057 GBP. I don't know why the $GOLD:$GBPUSD chart is not giving me any of this week's prices but there you go! Here is the chart:

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