Gold Technical Analysis and Near-Term Outlook
The outlook for gold is bearish. The decline from $1919.2 looks to be forming a five-wave pattern that targets $1734. Gold also broke lower out of an intra-day bearish flag today and is poised to challenge $1763 tomorrow. Settling below this will open the way for $1747 and $1734.
With that said, gold has held above the 62 percent retracement of the rise from $1678.4 at $1770.4 all week. Should gold rise above $1795, which is in line with the 100-day moving average, look for a test of $1809 and then key resistance at $1821. Settling above $1821 would warn that the move down is complete.
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
