GOLD's Price Correction: Anticipating a Bullish Retracement

Gold experienced a strong bearish impulse yesterday, intensifying the selling pressure following the release of the FOMC minutes. This downward movement persisted well beyond the initial reaction to the news. Today, the price has reached a significant demand area, presenting a potential buying opportunity at a discounted price. The current price level is below the 50% Fibonacci retracement from the previous swing low and falls within the 78.6% to 88.6% discount ratio from the minor swing low.

This technical setup indicates a favorable condition for a potential retracement, where buyers might step in to take advantage of the lower prices. The demand area, combined with the Fibonacci retracement levels, suggests that the current price could be a strategic entry point for a bullish reversal.

Given these factors, we are looking for the price to retrace and form a consecutive bullish impulse. This anticipated move could align with the market's tendency to correct after significant bearish movements, especially when key support and demand levels are met. As such, we are positioning ourselves for a potential upward move in the price of gold, capitalizing on the technical signals and the market dynamics observed.