Gold Continues Testing the $1,500 Level
|Gold continues being traded on the sell-side for a second consecutive week. The reduction in the trade tensions between China and the United States are increasing the investor's confidence. The two biggest world's economies are preparing for the early October meeting, which will take place in Washington.
During this week, the risk-of commodity eases 0.52% falling below the $1,500 per ounce. The risk appetite is driving the stocks market to advance for its third consecutive week. Dow Jones Industrial Average soars by third consecutive week climbing over the 27,250 pts, the highest level since July 31. The S&P 500 is being traded in the bull-side reaching the 3,021.75 pts, erasing the August's loses.
Technical overview
Gold in its 8-hour chart shows a first bearish leg from the September 04 high at 1,557,03. Currently, the golden metal is running in a corrective sequence. The price action suggests that Gold is moving in an incomplete wave B.
The current formation could drive the price to seek sellers in the area between $1,530 to $1,535 from where the wave B should be ended.
After this movement, we anticipate a new decline in five waves corresponding to a wave C. The potential bearish target of this decline is the area between $1,455 and $1,438. The invalidation level for the corrective scenario is at $1,546.
In the long-term picture, the primary trend is bullish. In this sense, we consider the possibility of a new bounce in five waves.
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