Gold Price Correction Tests Bullish Trend Above $4,250

Gold prices have extended their correction due to profit booking, but many traders believe this is an opportunity for value buying.

The Dollar Index has gained strength on a hawkish Fed, while markets are cautious about renewed geopolitical tensions.

According to technical analysis, Gold has completed a bullish impulsive wave at the threshold of $4700 and is currently in a follow-up A-B-C correctional wave.

Wave A is almost complete at $4397, with a current bullish consolidation forming Wave B, which may witness a bounce towards $4580-$4620. However, the price needs to break above the immediate hurdle at $4510 for this to happen.