Fourth, gold’s recovery this week stalled near the 61.8% Fibonacci retracement level from the April peak to the May low.
Further near-term targets for the bears look like the $1790 area. If risk-off sentiments prevail in the global markets at those levels, gold may quickly return to the area of $1730-1770, where it found buyers’ support in the second half of last year.
If we move up to the weekly timeframes, a potential final sell-off is seen in the 200-week moving average at $1630, which is also a 50% retracement of the 2018-2020 rise triggered by the soft monetary policy.
