Gold has reached its all-time high, but now it’s already given back half of its gains from the last rally in only six trading days. I warned you that after a new all-time high, gold would be pushed down again. That is exactly what we are seeing now.

From 2,146 US dollars, we have fallen within a week to 1,978. If we ask our colleagues Fibonacci, they will confirm that we have lost exactly 50 percent of the rally since October.

In the daily chart, you can see the rush of the gold bulls. From almost 1,800 US dollars, it went up to almost 2,150 US dollars. Just before the new all-time high, the seasonal low of the gold price is located – which this year played absolutely no role. So now we have arrived at the 50 Fibonacci retracement. But that doesn’t have to be a reason for the prices to turn up here again.

If we lay the 100 percent mark at the bottom in mid-November, Fibonacci will show us that we are just short of the 78.6 retracement of the last upward movement. Here the bulls should really do something soon. The 78.6 retracement is at 1,975 US dollars. We are only a few points away from that.

What also speaks for the bulls We had exactly where the prices are currently located, a regional high in the second half of July. This could give some backwind at least for a counter reaction. That the prices now turn directly up and maybe even make the next all-time high, I do not expect at the moment.

The RSI under the chart does not give us any hope here either. There is still plenty of room to the downside. Also here the sign of a counter movement is missing. Of course, this can come any day, but we are talking about the current state and this is definitely headed south.

The hourly chart looks no different: the bears are constantly pushing the prices down. Maybe something will happen in the area of the mentioned 1,975 US dollars. It is quite possible that the bulls will hide until then.

Overall trend trading with Fibonacci The Fibonacci zones shown above are also an ideal opportunity to get into a trade in a running trend. After all, the prices do not run up or down in a one-way street. You can already see this from the movements at the top of the chart.

There are always pullbacks that you can use to enter. And ideally, the best zone for this is between the 50 and 78.6 Fibonacci retracement. That is why exceeding 78.6 is a clear signal for many traders that the trend has broken here.

As long as the prices only fall to 78.6 percent of the last upward movement and turn up again there, everything is fine and the trend is still active. This gives rise to the good entry opportunities. We can take a closer look at this in the days to come.