The 1638.00 level has triggered a corrective downward reversal today. Bulls’ fluency during the break of psychological barrier $1600 for an ounce casts big doubts on capability of bears to perform a tangible pullback. Though a touch of pivot-zone 1561.45-1576.71 looks quite reasonable on the chart.
Gold undergoes corrective phase after a lengthy upswing. Given the fully completed downswing upward reversal can come at any moment. Bears’ targets (and concurrently the perspective zones of probable demand for the asset) might be 1547.38-1553.56 and 1515.66. Of course if they manage to pass the 1600.00 level.
Main scenario: Decline in direction 1547.38-1553.56 and 1515.66.
Alternative scenario: Upward bounce off 1600.00 and extension of growth in direction 1650.00.
Below 1600.00 - shorts in direction 1547.38-1553.56 and 1515.66.
In case of upward bounce off 1600.00 - longs to 1650.00.