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Will Gold Correct Deeper?

XAUUSD Bearish

Entry: 1519.65

Good day traders! XAU/USD ran into a 0.618% Fib retracement level for the first time since the November 2015 low. Price also tested the upper median line of a pitchfork for the second time and there might be enough resistance in place to turn Gold lower.

XAUUSD Chart

I cannot rule out another high, but Gold could very soon start a deeper decline. If price starts breaking below the 1519.65 level, with decent momentum, then we could see a test of last year November’s corrective low.

Conclusion

My bias on Gold remains bullish over the long run but I do expect a correction to take hold soon. That being said, the current world political climate could get worse and drive Gold much higher. We cannot control these things but if price does correct lower, then it will just give us another opportunity to trade Gold to the upside again.

Until next time, happy and safe trading.

Richard Krugel

by Richard Krugel January 15, 2020
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