FX.co ★ XAU/USD, GOLD

Gold 4-Hour Analysis: There is currently debate regarding the analysis of the behavior of the gold price. At 4077.85, the next fall goal seems to be very appealing. Since further drop cannot be ruled out, it would be wise to assess the market's reaction to this level once this goal has been achieved. We could take into consideration a corrective decrease to the building wave of 1804-2081, even though the daily chart's overall picture appears slow. We almost missed the 50% primary correction threshold this week (4077.85). It would be reasonable to resume growth from this level if we take into consideration another dip to 50%, where the upward trend line connects. The assumption of an early gain is supported by the daily chart's oversold gold. Wave analysis indicates that even in the absence of a 50% threshold, the fourth wave of growth is very likely to be finished. Growth can therefore proceed from the current positions. A divergence has emerged on the chart, which is the first indication that the drop will continue even if the majority of indications indicate increase. Due to regular updates of the lows, which show a negative trend, the 4-hour chart is less advantageous for purchasers than the daily chart. On Monday, you may see a bullish approach toward the resistance area of 4077.85 before the slide continues if there is a downtrend shedding. I would rather sell in this situation because the daily chart's divergence might start to correct itself. The 161.8% level (4077.85) will be the first goal for the slide, after which we may think about starting up again. At that time, though, I will assess the circumstances. Sellers will be able to reach the start of the 19th figure if the 161.8% level breaks.