Since the movement low on November 20, the noble metal could only gain a meager 1%. Silver , on the other hand, shot up by a staggering 24% during the same period!
Where do we go from here?
After the previous downward impulse, gold ( XAU/USD ) is in the consolidation zone that has existed since the end of November. Currently, an exhaustion of the current movement can be seen, which makes a corresponding reaction on the long side likely.
Provided that the aforementioned (green zone) is not sustainably undershot, the following reaction extent on the long side can be expected from a statistical point of view:
Minimum correction: 1,801 USD, probability of occurrence approx. 67%.
Normal correction: 1,811 USD, probability of occurrence approx. 50%.
Maximum correction: 1,821 USD, probability of occurrence approx. 33%.
If, on the other hand, the USD 1,764 mark is broken, further markdowns are to be expected and the situation will have to be reassessed.
Three special analysis methods are used within our trading strategy. In this article, only partial aspects were published and represents neither a complete trading system nor an investment advice or purchase recommendation.