Long
Gold Correction
Updated
Very clearly Gold was overbought recently with the FOMO narrative that the Dollar is going to the Dogs and the DXY at extreme lows. Investors panic bought Gold and as such we've seen it rise a long way from it's average and reversion to the mean is likely. We're not at an area of value yet and it might take us a short time to get here, but support it a little below where we are now, in the area of $1683 - $1745, which lines up with prior highs and lows from the recent consolidation, and sits around the 50% retracement area of the recent swing.
There might be some indecision here for a short time before resuming ascent and investors will be looking for a breakout from consolidation within that area.
It looks like there are 2 plays.
One is to wait for the confirmation of reversal on the daily with price action, which seems less likely
The other is having to endure several weeks of market indecision and waiting for the breakout from consolidation in that area. There might be a few fakeouts along the way.
Note
[img]I'm not convinced that the dollar has double put in a double bottom here and may simply re-test overhead resistance before continuing its downwards trajectory from all of the Brrrrr. (To be fair, the Brrrr had to happen right now, but there has been a fair anmount of fiscal irresponsibility in the time period leading up to Covid pandemic,.... it would have been nice to have had capacity for Brrrrr)
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