Gold’s formation of a bullish engulfing line today strongly suggests that the primary wave down from $1788.8 may fail to meet its $1642 equal to (1.00) target as previously expected. Instead, prices are poised to rise and challenge at least $1752, which then connects to $1764. Overcoming $1764 would call for a move above the $1764.2 swing high. This would invalidate the wave down from $1788.8 and clear the way for $1797 and higher.
Nevertheless, the 62 percent retracement of the move down from $1764.2 held today, and the move up from $1683.0 lacks a definitive wave restructure. Therefore, a test of $1710 support might take place first. This level is expected to hold. Key support for the near-term is $1697. Settling below $1697 would shift near-term odds back in favor of a move toward $1642.
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