The price of gold
fell yesterday and is already testing the first target area of $ 1800. If gold
is trying to record a drop equal to the $ 1965-$ 1850 move, then we should expect to see $ 1,774 this week, which is also the target of the AB = CD pattern activated since the breakout below the $ 1850 level. While the price of gold
is still bearish
at the present time, the price will be corrected by a maximum of $ 1825. Our next target for the downside is $ 1775, but the RSI
is in the oversold zone and although we expect the price to continue declining, it is not preferable to open new short positions at the moment. You can see long term support at $ 1700 - $ 1680. It is too early to know whether or not to test this range. Another important price level is $ 1725 where we find the 38% Fibonacci retracement
of the entire rally from the August lows.
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