Gold Technical Analysis and Near-Term Outlook
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August gold settled above the crucial $2412 objective today. This was in line with the intermediate (1.382) target of the wave up from $2304.2 and the 62 percent retracement of the decline from $2477. Settling above $2412 implies that the corrective move down from $2477 is complete.
The $2431 larger than (1.618) target of the wave up from $2304.2 and equal to (1.00) target of the wave up from $2327.4 held, but another test of this objective is expected. Settling above $2431 will call for a test of another highly confluent and key objective at $2458. The $2458 target is in line with the target of a confirmed $2304 double bottom, the 89 percent retracement from $2477, and projections of the waves up from $2304.2, $2304.7, $2327.4, and $2356. A test of support is anticipated before sustaining a close above $2458.
Nonetheless, because $2431 held today there is a reasonable chance for a test of $2402 first. This level is expected to hold because it is in line with the 21 percent retracement of the rise from $2304.2 and today’s midpoint. Taking out $2402 would call for a test of key near-term support at $2380.
