Despite the reversal seen near $1312 on Wednesday, prices head back up. Chinese data supported the bearish move as the economy continues to print problematic figures. Positive trade war narratives, however, supported the rejection at $1300. President Trump reported that he expects a trade deal with China within the next four weeks.
Will Gold Move Higher?
Since we are still completing a bearish cycle, there’s a good chance that corrective wave (c) sees an end a tad higher. A magnet zone is set near $1320/1325, as a confluence between the bearish golden ratio and bullish golden extension is seen around those levels. Meanwhile, bulls could be attracted by the ascending trendline of the open triangle pattern that may end near the critical magnet zone too. That could help the impulse wave (v) in completing the bullish move and start correcting.