Gold Technical Analysis and Near-Term Outlook
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Gold failed to rise and challenge the $2704 equal to (1.00) target of the compound wave up from $2629.7 after testing the $2682 smaller than (0.618) target on Wednesday. Instead, prices fell and are poised to take out the $2644.1 and $2644.5 corrective swing lows of the waves up from $2629.7 that still show potential to extend to $2704 and higher. Moreover, the wave down from $2690.5 took out its smaller than target and is positioned to fulfill its $2635 equal to target. This is also the 62 percent retracement of the rise from $2565. Settling below $2635 will confirm a bearish outlook for the coming days and call for $2615 and then a test of the $2586 smaller than target of the wave down from $2826.
Should gold rise again and overcome the 62 percent retracement of the decline from $2682 at $2668 look for another test of $2682. Overcoming this would call for key near-term resistance at $2704 to be challenged.
