Gold Technical Analysis and Near-Term Outlook
The outlook for gold is bearish and the move down is still in a position to eventually reach $1814. This is the equal to (1.00) target of the primary wave down from $2089.2. The connection to $1814 is made through $1854 and $1841.
Nevertheless, today’s $1883.0 high fulfilled the smaller than (0.618) target of the wave up from $1848.0. Therefore, there is a reasonable chance for gold to reach the $1895 equal to (1.00) target before the decline continues. This is also in line with the 38 percent retracement of the decline from $1966.1 and the 21 percent retracement of the decline from $2089.2. For the move down to continue during the next few days $1895 must hold. Closing above this will call for a test of key near-term resistance at $1921. Settling above $1921 would reflect a bullish shift in near-term sentiment and call for another substantial test of resistance before the decline continues.
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