Gold depreciated 10% in 1Q21, but this does not signal a gold bear market.
Gold strength has been capped, for now at least, below resistance at $1755/65 and whilst below here the outlook will stay seen lower for a retest of key support at $1682/71 – the 38.2% retracement of the entire 2015/2020 bull market and the recent and June 2020 lows.
Within gold’s current consolidative phase, a prior 1660-1670 support confluence has held well to deliver the consequence of a plausible near-term bullish double bottom pattern.
Gold has developed a minor double bottom and if the pattern delivers, there remains a nudge higher.
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