Chartbook: US Chart Gold (XAU): Consolidating below 4380 record high

Saw corrective pullback at the start of Q4 with prices giving up 10% of gains from the 4380 October record high to reach the 3900 level.

Subsequent bounce here see bullish price action returning focus to the upside and see potential for retest of the 4380 high. While the latter cap, prices are expected to extend consolidation here before continuation higher. Pullback should see support at the 4000/3900 area which is expected to underpin. A later break above 4380 high will see potential for extension to the 4600, .786 projection target. Higher still, if seen, will see room to the 5000 level being equality projection target and psychological level.

Meanwhile, support at the 4000/3900 area is expected to underpin. Would take break here to open up room for deeper corrective pullback to retrace bullish gains from the 2022 year low. Break here will see room for corrective pullback to strong support at 3500, the April Q2 high and 20% pullback from October high. Below this, if seen, will see deeper correction to the 3200 congestion and 3000 figure, 30% pullback from October high.