Gold Price Analysis: Technicals argue for weekly 50% mean reversion
|- Gold price is testing bullish commitments at critical levels.
- Bulls look to weekly chart for guidance back to a mean reversion.
As per the prior analysis during Federal Reserve's Jerome Powell's event, Gold Price Analysis: Bears back in play on Fed's Powell, eyeing $1,698, the price indeed melted to the target, printing a low of $1,686.40 and the verge of reaching the measured $1,685 target.
At the time of writing, gold is trading at $1,692 and down some 0.3% and is trading in a bearish environment.
Prior analysis
A break of 1,700 opens risk to $1,685 as a measured Fibonacci retracement target of the range between $1,760 and Wednesday’s low of $1,702. It is also the -61.8% Fibo retracement of the 4-hour correction's range.
$1,698 comes as the -272% Fibo of the same range which may offer strong support.
Live market
As illustrated, the price has indeed melted as per the playbook coming in a couple of dollars of the downside target.
Conditions on the hourly chart are bearish as well:
That being said, the price is yet to correct to a 38.2% Fibonacci level, so there is still room for upside before further downside.
Meanwhile, the weekly chart is still compelling and requires a correction.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.