Gold had yet again hit fresh highs around $2075 last week. The yellow metal has been pulling back and has managed to print intraday lows around $2014 today. It is seen to be trading around $2019/20 levels as we prepare to publish, and could be close to completing an impulse wave.
Gold has been rallying since May 2019 after printing lows around $1262 levels. It has remained in control of bulls as they carved a series of higher highs and higher lows towards $2075 mark. A bearish reversal remains high probability from here.
Looking at the larger degree wave structure, Gold has been in a corrective phase since 2011 highs at $1920. Since prices have pushed beyond $1920 mark, the possibility of a zigzag is eliminated. An expanded flat could be in the making instead.
High probability wave counts in Gold could be an A-B-C expanded flat in the making since $1920 high. Potential Wave A could be labelled around $1046, Wave B might have potentially terminated around $2075 last week and Wave C could be preparing to turn lower again.
We need to allow an impulse drop to confirm that much deeper correction is on its way. Gold seems to be close to completing an impulse from $2075 highs, on the hourly chart. Once it is complete, it could be ideal to look out for counter trend rally to initiate sell.
Immediate short term support is seen towards $1950/60 levels and a break below that mark would be encouraging to bears. Gold might be preparing for a huge reversal from here.
Flat for now. Preparing to sell again.