Gold Technical Update
- Gold has been unstoppable as the uncertainty among fiat currencies and risk aversion prompted safety demand, and with the USD hurting, JPY and CHF both weakened slightly by intervention, gold continues to soar as it does not have any prospect of intervention at all.
- Also, the market has completed a 9-wave rally since the 1478.10 low. This is the structure of a motive wave when there is an extension in one of the smaller waves. By no means however does it mean we can't have further extension, but it does look like an extended 5th, with a blow-off in the 5th.
- A bearish scenario in the very short-term can materialize if the market falls below the 1731.45 pivot.
- However, a bearish scenario might be contained above 1680 , so 1680 should be the maximum target for a strong break and close below 1730 .
- Gold will be sensitive to risk sentiment. A bit of risk appetite coming back can help stall gold's historic rally .
- However, the market is prone to buy on dips at the moment, so shorting gold requires a lot of "agility"
- The bullish targets for gold can be projected using a fibonacci expansion tool.
Fan Yang CMT
Chief Technical Strategist