Gold Technical Analysis and Near-Term Outlook
Gold rallied and settled above the 200-day moving average and the larger than (1.618) target of the wave up from $1789.1. This was bullish for the outlook and infers that the corrective pullback from $1835 is complete. There is still immediate resistance around $1835 but the wave formations now call for $1842 and $1855. Furthermore, settling above $1842, which is the smaller than (0.618) target of the wave up from $1750.1, will open the way for $1874 and higher.
With that said, the 50-day moving average held and the wave up from $1789.1 is due for a pullback before rising much higher. Today’s $1819 midpoint is expected to hold and $1805 is key support for the near term. Settling below $1805 would shift odds back in favor of $1784 and possibly lower.
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.
