Gold soared to record highs on the 7th of August. However, recent risk sentiment has evidently shifted.
The current Tenkan line is acting as a resistance pulling the price to trade closer to the Kijun line, indicating a downward movement. In addition, the momentum indicator supports this notion.
However, a trend reversal is likely once the price reaches the 78.6% Fibonacci Retracement. This level will continue to see prices trading outside of the Ichimoku cloud.
We can then expect the bullish continuation to continue to fresh highs towards $2077.
In the short term, the 1h momentum indicates a bullish divergence. This suggests possible exhaustion with the prices being pulled back towards the Tenkan line at the $2010 area.
Once this level is achieved, the Kijun line will come into play shifting the price action towards the cloud.
The 61.8% Fibonacci retracement at 2031.98 could be hit should this drive continue. More progressive targets are marked at 78.6% and 100% Fibonacci retracements, at 2051.21 and 2075.70 respectively.
