Much volatility was seen in Gold last week but overall outlook is unchanged. We’re viewing price actions from 1916.30 as developing into a corrective pattern, that’s still in progress. Today’s fall suggests that it’s already in the third leg. Break of 1855.30 support will target 55 day EMA (now at 1838.82) and possibly below.
At this point, we’re still viewing larger correction from 2075.18 as completed with three waves down to 1676.65. Hence, we’d expect strong support from 38.2% retracement of 1676.65 to 1916.30 at 1824.75 to contain downside, and bring rise resumption. We’d expect rise from 1676.65 to resume at a later stage, to retest 2075.18 high.
