Regarding the development of Gold, this question has been in our minds for some time. Is gold just correcting the rise from 1451.16 to 2075.18? Or it’s correcting the whole up trend from 1160.17? We’d probably find out very soon as the results of US election unfolds, which should set the direction of the financial markets for the next few months.
1848.39 support is a key level, as it largely overlaps with 23.6% retracement of 1160.17 to 2075.18 at 1859.23. Sustained break of this support zone will favor the case that it’s in a larger scale correction. Deeper decline should be seen to 38.2% retracement at 1509.70, which is close to 55 week EMA (now at 1735.45.
Nevertheless, even in case of a brief breach, failure to sustain below 1848.39, followed by break of 1933.17 resistance, will argue that the correction is a smaller scale one, and has probably completed. Retest of 2075.18 high should be seen rather soon, with prospect of a break out. We’ll see.
