Gold might have carved a meaningful top around $2075 or print yet another high before giving in to bears. The yellow metal has raised through $1996 yesterday before pulling back again. It is trading around $1990 mark for now and is facing resistance around current levels.
Gold had dropped from $2075 through $1862 levels over the last few days before reversing higher again. The drop seems to be in 3 waves and it is quite possible that Wave 4 is being carved. Another probability remains for a leafing diagonal as well if not an impulse drop.
Either way, the metal should be preparing to revere lower from current price action ($1990) and break below $1862 mark, going forward. This could be the beginning of a potential trend reversal that probably lasts for several weeks and months.
Gold has been in a larger degree correction since 2011 highs around $1920 levels. The earlier drop between $1920 and $1046 has been labelled as Wave (A) and the subsequent rally through $2075 has been labelled as Wave (B).
If the above structure holds well, Gold should be heading lower towards $1046 and beyond as the last wave of an expanded flat unfolds, Wave (C). Alternately it could be a more complex correction taking shape of a combination W-X-Y.
High probability remains for a bearish reversal either from here or from fresh highs above $2075, going forward. It could be a safe strategy to prepare selling on rallies from here on.
Short against $2080, target is open.