Gold Technical Analysis and Near-Term Outlook
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Gold tested and held the $3420 smaller than (0.618) target of the primary wave up from $3151 today. Most waves that meet the smaller than target extend to eventually fulfill at least the equal to (1.00) target, in this case, $3500. Therefore, the outlook for gold remains bullish. Settling above $3425, a confluence point among the projections of the waves and subwaves up from $3151, will open the way for $3454 and then $3500.
Nevertheless, the pullback from $3427.7 may test $3322 first. This is the 38 percent retracement of the rise from $3151 and a level that a normal correction should hold. Closing below $3322 would call for an extended correction to challenge the respective 50 and 62 percent retracement at $3290 and $3257. Gold must settle below $3257 to imply that the move up from $3151 is complete and that a reversal is underway.
