We continue to target the 1625.77 January low
- Last week the gold price rose to 1616.94 before dropping back below the 1600 mark on Monday morning.
- While it remains above its seven month February low at 1554.83, though, further upside remains in store.
- We still believe that an interim low was made in February and that the precious metal should reach the January low at 1625.77 in the weeks ahead. Between it and the 1635.48 December low the gold price may encounter resistance, at least for a few days.
- Further potential upside targets can be seen at the 38.2% Fibonacci retracement of the October-to-February decline at 1647.07 and around the 1651.84 late January low.
- For now unexpected failure at the 1554.83 February low will put the 1547.87 late June low and the 1522.48 December 2011 low on the map. This scenario we do not think likely to occur at present, however.
Gold – Weekly Chart
Gold continues to oscillate around the 1600 mark
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