Last week has been a wild ride for Gold traders, with the price rallying aprox 4,000 pips (around 10%), only to sell off 2,000 pips on Friday in what many expected to be a well-deserved correction.

The big question now is: was that correction enough, or is Gold preparing for another leg down before continuing higher?

In my view, this was just the first leg of the correction, and I expect another wave of selling to come this week.

Currently, Gold is recovering from Friday’s sharp drop, and this rebound could potentially push prices back above 4,300.
If that happens, I’ll be watching closely for signs of weakness to position myself short.

Overall, I believe a new test of the 4,200 area is likely before any sustainable recovery can take place.