Gold Correction Hits Fibonacci Zone, Signaling High-Probability Rebound Setup

Gold has entered a pivotal moment within its larger bullish cycle structure, and the recent sharp decline has done more to reset bullish momentum than destroy it. After reaching a short-term peak near 4398, Gold triggered a strong mean reversion correction that accelerated once weekly resistance levels failed to break. Momentum cascaded into the Buy 2 Daily and Weekly Buy 1 levels, creating the new low of 4021.2 and driving price directly into a high-probability reversal zone.

The VC PMI framework shows that the weekly price momentum remains bearish so long as price holds below the 4118 pivot. That critical level also aligns with downward trendline resistance created by the post-high selloff. A close above 4118 would confirm the reversion back toward the mean and unlock upside targets at the Sell 1 Daily level near 4179, followed by a test of Sell 2 resistance near 4221. Beyond that region lies a larger resistance cluster around 4256–4319, where the prior breakdown originated.

Beneath the surface, however, the structure remains constructive. The market is now testing the 78.6% Fibonacci retracement of the entire 4398-to-4021 move, an area that frequently marks the terminal stage of liquidity-driven corrections. That same zone is reinforced by Square of 9 harmonics, which place significant geometric support between 4035 and 3973 — the exact location of the Weekly VC PMI Buy 1 zone. When multiple independent mathematical frameworks converge, the reliability of a bullish reversal increases notably.

Cycle timing adds further conviction. Gold is currently entering a 30-day cycle low, but this short pulse is nested within a 60-day and 90-day bottoming cluster that extends into mid-November. These nested cycle lows often act as powerful turning points, especially when aligned with a bull-phase 360-day cycle, which remains firmly intact. In other words: the long-term uptrend is not only alive — it’s preparing for its next expansion phase.

Momentum studies reflect capitulation rather than continuation. The MACD is deeply oversold, and bullish divergence is emerging as the downside energy fades. Volume has surged into the lows, suggesting strong hands are accumulating into weakness rather than chasing the downside.

Put simply, Gold is positioned at a critical inflection point. As long as 3970–4020 holds as structural support and price confirms with a close above 4118, the path of least resistance shifts back upward, setting the stage for a bold, potentially multi-month rally into year-end and beyond.

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