After finding resistance just below 1600, gold has corrected the recent rally from 1526 and found support at the 61.8% Fib retracement.
We did not expect gold to fall below 1570 and would be very surpirsed to see it fall below 1550, though we can't discount a retest of the lows at 1526
Nevertheless, we consider the low to be in for the correction and the risk reward profile is overwhelmingly in favour of a long position right now.
Should 1525-1520 fail to hold, gold could be headed much lower and we would have to reassess our longer term bullish picture.
We did not expect gold to fall below 1570 and would be very surpirsed to see it fall below 1550, though we can't discount a retest of the lows at 1526
Nevertheless, we consider the low to be in for the correction and the risk reward profile is overwhelmingly in favour of a long position right now.
Should 1525-1520 fail to hold, gold could be headed much lower and we would have to reassess our longer term bullish picture.