Gold Price Pushes Above $1350 On Weak GDP
London (Aug 1) Gold price pushed above $1,350 on Friday after the weak GDP numbers announced for the US economy. With dollar weakening, gold price spiked above short-term resistance and reached $1,356. Despite being technically bullish, gold price has completed a 3-wave upward correction that reached the 61.8% Fibonacci retracement of the entire decline.
According to my wave analysis, gold price has completed wave C up on Friday's high and a 5-wave sequence from wave B low. Price is now expected to reverse aggressively to the downside. The uptrend stopped at the 61.8% Fibonacci retracement.
The weekly chart remains fully bullish as price remains inside the blue channel and above both the tenkan- and kijun-sen indicators. Weekly support is between $1,300 and $1,270 and I believe we are going to test it.