Gold eyes further gains after 61.8% retracement hold

Gold is still trading higher since the start of the week. And when looking at the most recent drop toward the 4658 area, it appears to have been a three wave retracement, a corrective move right into the 61.8% level. The current rebound, although small, looks impulsive and is now trying to break out of the corrective channel. This suggests there is still a good chance that gold could retest the 5100 area. But keep in mind that the move up from the February lows can still be a countertrend corrective rally, and the broader correction from the all time highs is most likely not finished yet.