this week gold just kept breaking supports, one after another, and on Friday sellers have reached a key daily level.
on 8H/4H chart we see a nice combination of two harmonic movements with a perfect match of their projected completion points. moreover, we have a perfect fib.confluence of the last two bearish impulses.
based on that I believe that on Monday the price may retrace and reach at least 1700 level, the first strong structure resistance.
However, the situation is completely different from a daily chart perspective: the price has set a lower high and it looks like it is a now bears' turn to try to break a key level.
next week on our radar will be 1680 daily support. after a pullback from it look for a breakout attempt with a daily candle close below structure as a confirmation. if this condition is met, the price will drop lower and the before mentioned support will turn to resistance.
Not bad. Do you think it will retest? In my opinion it will go to the downside because it has already broken the monthy level line.
ATradersViews
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For the direction of gold in the short/medium term just keep an eye on US govt bond yields. They have been rising and precious metals don't like higher rates. I expect buyers on gold on dips but it could fall further if bond yields continue to rise.