The Gold weekly chart shows that we have still to go lower as we are in wave 3 down, which has a target of 650. The current minor upleg has a target of 780/800 and for another 2-3 weeks we likely will stay in 680 -780 range as a consolidation before the downtrend resumes. That is very much linked to the EURUSD development, which is in wave 4 up for now and that should last 2-3 weeks as well before we go to lower ground. The commodity complex also needs a new low but Gold will be decoupled at some point when we enter a more substantial upside correction in stocks after hitting new lows. Due to the false impression that markets are doing well and some 'safe haven' buying, especially from retail buyers might be unwound.
Thursday, October 30, 2008
Gold technical outlook
The Gold weekly chart shows that we have still to go lower as we are in wave 3 down, which has a target of 650. The current minor upleg has a target of 780/800 and for another 2-3 weeks we likely will stay in 680 -780 range as a consolidation before the downtrend resumes. That is very much linked to the EURUSD development, which is in wave 4 up for now and that should last 2-3 weeks as well before we go to lower ground. The commodity complex also needs a new low but Gold will be decoupled at some point when we enter a more substantial upside correction in stocks after hitting new lows. Due to the false impression that markets are doing well and some 'safe haven' buying, especially from retail buyers might be unwound.
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