RLinda ! GOLD->The ABC correction is over at 0.618? What's next?

Gold closed the week's session Friday with a 1.2% loss, recovering after testing lows of 1818.9, as the dollar declined from session highs

The ICE dollar index was last up 0.12 points to 103.97 after earlier hitting 104.67. The 10-year bond yield also fell 2.4 basis points from the day's highs after reaching 3.922%.

However, the fall in the metal's price came amid economic data this week showing that U.S. inflation rose 6.4% faster than expected in January, retail sales last month rose above forecasts, and the producer price index also beat expectations.
The strong data came after the Federal Reserve signaled a more dovish turn at the end of its Feb. 1 policy meeting, but now several central bank officials are calling for a more hawkish approach to raising rates and keeping them on hold longer to push inflation toward the 2% target, which is bullish for the dollar and yields

Technical Analysis:
We see that the corrective 4th wave ends in the area of the formed 0.618 Fibonacci level (at 1816.22)
In this area also passes a strong upward support line (dotted line), at the point of intersection formed a strong support, which caused a fairly strong price correction closer to the close of the session, where we saw a price recovery of 1.35%
Friday's intraday candlestick closes at its highs, and there is a chance that the bullish pullback will continue on Monday, breaking the 0.5 Fibonacci level (1843.63). If that happens, the price will open the way to 1871 (0.382 Fibo) and 1904 (0.236 Fibo).

Consequently, if the price soon overcomes the 1843 area and continues its strengthening, it will be possible to claim the end of the ABC correction movement, which started at the 1959 area and ended at the assumed 1816 level. If the correction ends, it would make sense in the medium to long term to expect the price to rise to areas such as. 1920, 2000, 2070, 2100

Regards R. Linda!

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