Gold Technical Analysis and Near-Term Outlook
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December gold’s pullback from $2708.7 confirmed a daily RSI overbought signal. However, the pullback stalled before testing the $2656 smaller than (0.618) target of the wave down from $2708.7 today. This is a tight call for the near term, but odds lean in favor of testing the $2702 larger than (1.618) target of the wave up from $2349.8 again. Settling above this will call for $2720 and likely $2732.
Nevertheless, the uptrend is due for a more significant correction based on the RSI overbought signal. However, unless gold takes out $2656 and settles below the $2632 equal to (1.00) target of the wave down from $2708.7 the move down from $2708.7 will likely be another short-lived correction. Closing below $2632 will put the near-term odds in favor of a more substantial test of support with thresholds at $2607 and $2594.
