Gold Price Analysis: Bears seek 5-wave correction to 61.8% Fibo retracement

Gold has popped in the start of the week's Asian session, with risk-off themes fueling the bid.
The price may be completing a 5-wave scenario and could be subject to a bearish correction.
The 61.8% Fibo and weekly support in the low 1500s could be on the cards.

Ross J Burland FXStreet

Gold daily chart opening gap, the downside correction target

Gold daily chart, weekly support and confluence with 61.8% Fibo

Gold daily chart, 5th wave bearish correction to 61.8% Fibo target scenario

The price of gold has been climbing in five waves on the monthly charts and could be on the verge of a correction. However, considering the geopolitical environment as well as the risks of a global pandemic of the Coronavirus, it could be prudent holding off at this juncture from positioning any shorts. Instead, it may be a higher conviction trade to look for a bullish entry point marked by the opening gap. Failures there opens an opportunity to get long down in the 61.8% Fibonacci retracement of the monthly impulse from the 1460s.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

GBP/USD off highs, back to 1.3620

GBP/USD remains slightly on the defensive at the end of the week, receding to the low 1.3600s after hitting fresh tops past 1.3670 earlier in the day. Cable’s correction comes after two daily gains in a row and amid a tepid advance in the Greenback, while poor UK data also accompany the downside.

EUR/USD treads water below 1.1700

EUR/USD now trades with modest losses around 1.1670 following another unsuccessful atempt to advance past 1.1700 the figure in a convincing fashion. The pair’s decline follows a maginal rebound in the US Dollar as market participants continue to assess recent US data as well as developments from the US bond market.

Gold keeps rallying toward $4,700, fresh three-month highs

Gold extends its last week's stellar performance into Asian trading on Monday, refreshing three-month highs beyond $4,600. The precious metal capitalizes on persistent US Dollar weakness, following the US Treasury's buyback plan amid fresh US-Canada trade tensions.

Bitcoin, Ethereum and Ripple pause as momentum indicators signal overbought conditions, massive rallies

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) hover around key levels on Monday, with a bullish bias but appearing stretched after surging over 23%, 31% and 53% in the previous week. Such a massive rally suggests the top three cryptocurrencies could consolidate or pull back in the short term as traders take profits.

US Dollar Weekly Forecast: Enter Jackson, mind the (budget) Hole

It was not geopolitics, the US-Japan joint FX intervention to support the beleaguered Japanese currency or the omnipresent bets on what the Federal Reserve (Fed) might do in the second half of the year that kept the US Dollar (USD) well on the back foot over the past five days.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.