Gold prices continued the volatile trading session and this time, price action closed sharply lower on the week.
For the week ending Friday 13th, March, gold prices are down a solid 8%. This comes right after prices touched a six-year high at 1700.
In the near term, we expect to see a modest rebound as prices broke down from the ascending wedge pattern.
A retracement back to the 1590 level is quite possible. Following this, a successful reversal will see gold reversing direction to test the support level near the 1460 handle.
This will mark the downside retracement in gold prices for the moment.