Gold technical analysis: The 50% mean reversion target comes in at 1478

•  On the upside, bulls can look to1,558 while a 50% mean reversion target that comes in at 1478.
• The 20-day moving average at 1512 is first support area.

The price of gold is moving lower in a sustained correction towards a 50% mean reversion target that comes in at 1478, albeit with some way to go and support in the 20-day moving average at 1512 ahead of 1419. The 50% mean reversion target comes in at a level of support from the 13 Aug volatility and drop.

A 61.8% retracement would then be located at 1,460 ahead of the 19 July swing highs at 1,452.93. On the upside, bulls can look to1,558 as a means to open 1,590 as the 127.2% Fibo target area. Thereafter, bulls can target the 78.6% Fibo of the 2011 to YTD range located in the 1,730s ahead of the triple-top peaks of the 1,800s.