Gold Technical Analysis and Near-Term Outlook
Gold rallied and settled above the 50-day moving average and the 38 percent retracement of the decline from $2089.2. This is bullish for the near-term outlook and reflects a positive shift in near-term sentiment. The move up is now poised to challenge $1963, $1979, and possibly $1999 during the next few days. The $1999 objective is most important because this is the 62 percent retracement and the larger than (1.618) target of the primary wave up from $1851.0.
With that said, the $1948 equal to (1.00) target of the same wave up from $1851.0 held on a closing basis today. Therefore, a test of support might take place before gold challenges $1963. Initial support at $1925 is today’s midpoint and is expected to hold. Key support is $1903, today’s open and the 50 percent retracement of the rise from $1851.0. Closing below $1903 during the next few days will shift odds back in favor of $1873 and lower.
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