Gold price has fallen almost a percentage point lower on the back of improving risk sentiment. Positive gains in Asia, strong US earnings and robust European GDP data have all helped boost sentiment. Gold price may be unfolding a Measured Move price pattern lower on the charts. The Gold price trades lower by one percent on Tuesday, in the $2,310s at the time of writing, as a positive market mood dents safe-haven demand for the precious metal.
The end of the final C wave can be estimated based on the length of wave A. It is usually either equal in length to A or a Fibonacci 0.681 ratio of A. A break below $2,290, however, would confirm the pattern is a Measured Move and lead to more downside as wave C unfolds, with targets at $2,267 and $2,245 . The Moving Average Convergence Divergence momentum indicator has started printing bearish red histogram bars and has crossed below its signal line lending the chart a negative tone.