Gold: the market back up from 38.2% Fib again

Gold

Is this the point at which we begin to see gold finding its feet once more? The sharp unwind of the bull run to $1610 has already unwound 38.2% Fibonacci retracement (of the $1445/$1610) around $1548 and the gold bulls began t look more confident again on Friday with a positive candle that has taken the market back up from 38.2% Fib again. It is also interesting to see the positive candle of Friday forming an uptrend of the past three weeks (which comes in around $1548 and which coincides with the 38.2% Fib again). Gold became extremely overbought recently and a retracement was a natural consequence, but once the bulls dusted themselves off, the outlook remains positive. Once the support looks to be solid, then the confidence levels will grow again. Friday’s high of $1563 is initial resistance now. A move back under $1540 would open for a deeper correction, but for now, this is a consolidation developing.