Of course it’s just a man staring at a chart. But he’s using visual support and a logical Fibonacci retracement level to gauge a very valid short-term target to likely end the correction (with a bang), assuming gold breaks down, which it is hanging by a thread (and unimpressive looking support) trying not to do.
But first a warning, because I want to illustrate everything I see, not just what I want to see. So bad news first, if gold breaks down here it’d be breaking down from a pattern that depending on how you measure it, could reach as far down as 1278. That would likely come with a macro meltdown of epic proportions if even gold gets destroyed.
A far less probable scenario under the general gold disaster view would be that the precious metals get destroyed with the inflation trades and some kind of Goldilocks rotation comes in and pumps Tech/Growth. They too have been decimated, after all.
But dialing it back in to the more probable, if gold loses immediate support right here at 1670 it would be a shoe-in for the 50% Fib level at 1628 and while it’s at it, how about the 62% Fib at 1518? That would register an all-important higher low to 2020. Above that is initial support at 1564.
