Gold Price Analysis: Bears testing the commitments of the bulls

• Gold prices are carving out a lower low in contrast to corrective expectations. 
• Bulls can target a daily bullish retracement, anticipating a bid from deep with demand ahead of $1,700.

Further to earlier analysis at the start of the week and in Monday's New York session, Gold prices have already started to make their intentions clear towards the $1,700 figure. 

In Asia, the price has printed a fresh cycle low of $1,713.86 having just completed a 38.2% Fibonacci of the latest bearish hourly impulse. 

Hourly chart

As can be seen, the price printed a low that meets the -61.8% Fibonacci retracement of the latest correction. However, a deeper target of $1,705 could be on the cards if the price is measured from the deeper 4-hourly correction. 

Meanwhile, however, the daily bearish impulse is expected to stall at this juncture and a significant correction could be on the cards before the downside can continue as explained in the following analysis:

Gold Price Analysis: Bulls moving out, bears moving in eyeing $1,685

Prior analysis, weekly chart

The weekly chart offers a layer of strong support which would be expected to be tested properly only once there has been a significant test of prior support as follows:

Prior analysis, daily chart

As illustrated, the price is meeting support and a 50% mean reversion at this juncture has a perfect confluence of prior lows and resistance structure.