Gold Forecast Turns Bearish On Break Lower
Short-Term Technical Forecast for Gold
Gold prices remain in a fairly tight short-term range, and subsequent forecasts are somewhat unclear. The COMEX Gold contract recently failed to break above the 50.0 percent Fibonacci retracement of the 935-865 move at 900. The resistance level likewise coincides with a recent spike-high, and Gold bulls may have a difficult time breaking above it. To the downside, a multi-week trendline lends support near the 890 mark. Until we see a break in either direction, short-term outlook will remain unclear.
Long-Term Technical Forecast for Gold
The decline from 1008 is an impulse (5 waves), indicating that the larger trend has turned down. Since 1008, gold has declined in 5 waves and advanced in 3 waves at multiple degrees of trend. Price ideally remains below 968 (wave 2 high).