We are seeing a very interesting technical situation on gold. Potentially, we can talk about a saucer formation or an inverted head-and-shoulders formation. Looking at the scope of this formation, the target would be around $2110 per ounce. However, first there would have to be a test of the area around the 2060 point level, where the neckline is located. It is worth noting that gold is currently highly correlated with TNOTE, while in the case of the correlation with the EURUSD we are observing some divergence. The EURUSD pair has been falling faster recently than it has been for gold.
We are currently seeing a rebound from around the uptrend line and the 23.6 retracement. If gold rises to the vicinity of $2035 per ounce, further upward movement is more likely.
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Source: xStation5
