As I mentioned in my monthly analysis yesterday “While gold could temporarily bounce to 1760-1790 area, I am expecting it to target 1640-1440 area in this correction, the targets that I identified in the middle of August 2020″.
Today, the futures shortly touched 1757.20 and then fell hard. I believe that the stock is in wave 3 of (C) of C, following the green channel on the chart above.
My operative view is that the futures should continue to fall for several days to 1640-1650 area where it could spend several weeks, consolidating before the final push to 1440.
However, as the daily RSI has entered into the oversold territory and, theoretically, the correction has reached its minimum target (the red rectangle), there is a chance of a sharp reversal. I will try to update immediately once I see the first signs of it.