Gold seems to be heading toward the key support of 1,850 USD, where the price has stopped a couple of times already. However, this time it looks like the support won't hold, and since there are large stop-losses below this level, we might see a quick bearish breakdown. The next immediate target for bears should be in the 1,815 USD region.
The full potential of this triangle pattern is circa 200 USD. Thus gold might actually drop to 1,600 USD if this potential is fully achieved.
BUT.. the technical situation might be bearish, but the fundamental situation remains ultra bullish as central banks are debasing their currencies and printing billions of dollars each day. Therefore, long-term investors should be using these dips to add gold to their portfolios.
Gold needs to rise above 1,900 USD to stabilize, but that seems unlikely right now, considering the bearish sentiment.
