Gold dropped to as low as 1562.5 last week before forming a temporary low there and recovered. Initial bias is neutral this week for some consolidations. But recovery should be limited below 1667.1 support turned resistance and bring another fall. Below 1562.5 will target 1535 key support and below.
In the bigger picture, price actions form 1923.7 high is viewed as a medium term consolidation pattern only. The first leg has finished with a dive to 1535. The second leg is completed at 1804.4. Fall from there is treated as the third leg of the consolidation and should target 1535 and possibly below. Though, at this point, we'd anticipate strong support from 1478.3/1577.4 support zone to complete the consolidation and bring up trend resumption.
In the long term picture, with 1478.3 support intact, there is no change in the long term bullish outlook in gold. While some more medium term consolidation cannot be ruled out, we'd anticipate an eventual break of 2000 psychological level in the long run
ONG Comex Gold Continuous Contract 4 Hour, Daily, Weekly and Monthly Charts
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