GOLD (GC1 Futures) - Pullback before further move downOn the weekly timeframe, GOLD (based on the futures chart) has formed a head and shoulders pattern. Taking the Fib points from the most recent weekly high to the most recent weekly low gives us a very clear shorting location.
Keep in mind, the daily POC - standing for point of control - is bang on the 0.382 point of this recent move, however, keep in mind that there is potential for a wick to the 0.5 area as well.
Fundamentally, countries - outside the US - seem as if they are going to be entering recessions in the coming months. Add in the uncertainty around China, there is some leeway for a short term reversal for gold.
Some ideas I have : Go long now, either directly OR via buying call options. After this, look for an initial short entry at the 0.382 area, however, opt for buying put options at this zone. The target for this move is the yellow box designated on the chart.
Remember, buying a call OR put option subjects you to paying the premium, however, there is NO RISK if the position goes against you. This is NOT the case however if you SELL either a call or a put option.
Please remember, this is not financial advice. This is purely my opinion and my opinion only.
