Gold Technical Analysis and Near-Term Outlook
Gold fulfilled the $1687 target at today’s $1687.6 low as called for in yesterday’s daily update. This is a confluent wave projection and a potential stalling point. However, any move up will most likely prove to be another short-lived correction. This is because the primary wave down from $2107.6 still favors a decline to its $1631 equal to (1.00) target. The connection to $1631 is made through $1681, $1668, and $1653. Once $1631 is met, a solid test of resistance is anticipated before gold falls any lower.
A few daily momentum oscillators are now oversold and there are bullish daily divergence setups. However, there are no patterns or confirmed signals that call for a significant reversal. As stated, as gold works its way toward $1631 any move up should be a simple correction. For now, $1729 is expected to hold and $1747 is key for the near-term. Settling above $1747 will call for a more significant test of resistance before gold falls to fulfill the $1631 objective.
This is a brief analysis for the next day or so. Our weekly Metals Commentary and daily updates are much more detailed and thorough energy price forecasts that cover key COMEX precious metals futures contracts and LME Non-Ferrous (Base) metals, spot gold, the gold/silver ratio, and gold ETFs. If you are interested in learning more, please sign up for a complimentary four-week trial.
