Gold can be expected to fall to the next support level 4100.00 (former multi-month low from March) – the breakout of which can lead to further losses toward 4000.00.
- Gold broke key support level 4325
- Likely to fall to support level 4100.00
Gold recently broke the support zone between the key support level 4325.00 (which has been reversing the price from March, as can be seen from the daily Gold chart below), 61.8% Fibonacci correction of the upward impulse (1) from the end of March and the support trendline of the narrow daily down channel from the middle of April. The breakout of this support zone accelerated the active short-term impulse wave C – which belongs to the intermediate ABC correction (2) from the middle of April.
Given the widespread risk off sentiment across the precious metals markets lately, Gold can be expected to fall to the next support level 4100.00 (former multi-month low from March) – the breakout of which can lead to further losses toward 4000.00.