Caution..With the recent small increase, gold was able to understand my forecast in first steps. However, the potential available for this movement (c) has not yet been exhausted, as the chart shows. However, the chart also shows – and in my opinion very clearly – that the precious metal is still in correction mode. This aspect alone calls for caution with gold, because the potential for setbacks is high. In the chart I have shown my very long-term perspective in this regard.
Outlook for gold:
Gold forms the second wave (c) within the complex correction (abc-x-abc). With the small 0.76 resistance exceeded at USD 1,722, a little leeway was created again. A slight correction can nevertheless be expected in the coming days, as gold has hit the upper light gray trend line. Of course, not much can be expected from this movement. The small trend can run up to a maximum of 0.62 support at USD 1,685.
As a rule, in comparable constellations, this correction is not so dramatic. In the further course, wave (c) will continue to perform up to the 0.62 line at USD 1,766 and only then will a larger trend reversal be initiated.
Within a major upward correction, an upward movement forms in gold. In my opinion, there is currently no way of being able to position yourself promisingly. Any positions should be hedged on the 0.38 retracement (USD 1,677).