On the daily timeframe, Gold broke a descending formation and is currently retesting it. Keep in mind that the $1,730 daily support level is a very critical zone and not closing below it while retesting the descending channel may signal a great long-term buy opportunity towards retesting previous highs.
Our first target for this trade will be the 50% Fibonacci Retracement level ($1,869) which is also the previous wave (iv) according to the Elliott Wave theory. Breaking above this area will push the price for further upside towards retesting $1,980 and $2,051 in extension.
Keep in mind that fundamentally speaking, most global economies if not all of them are currently dealing with very high inflation numbers, in addition to some of them are now officially in a recession. Last but not least, the VIX broke a falling wedge formation on the daily timeframe which may help this scenario become more valid.
Goodluck!
Our first target for this trade will be the 50% Fibonacci Retracement level ($1,869) which is also the previous wave (iv) according to the Elliott Wave theory. Breaking above this area will push the price for further upside towards retesting $1,980 and $2,051 in extension.
Keep in mind that fundamentally speaking, most global economies if not all of them are currently dealing with very high inflation numbers, in addition to some of them are now officially in a recession. Last but not least, the VIX broke a falling wedge formation on the daily timeframe which may help this scenario become more valid.
Goodluck!