GOLD ANALYSIS (1 W)To understand the psychology in Gold,
I use only two tools:
Fibonacci retracement,
Trend-based Fibonacci extension.
We will use these two tools to measure the weekly cycles.
Since November 2022, Gold has been forming a pattern that can only be explained by Fibonacci principles.
Using Fibonacci retracement for each swing high and low, you'll realize that each retracement equals around 50%.
In only one example, we see that a higher low reaches the 61.8% level, which is also acceptable.
After these retracements, the next leg of the impulsive move always reaches around the 1.618 Fibonacci extension.
According to these two basic technical factors, Gold should first reach around $3,800, and then aim for the $6,600 level during the next impulsive leg in the coming years.
I’m not even going to list all the reasons why Gold tends to go up over time.
Most people reading this analysis are already aware of the fundamentals behind Gold’s long-term bullish nature.
Thanks for reading.
