Gold has been drifting sideways into a potential contracting triangle, after having carved a meaningful top around $2075 earlier. This could be a consolidation phase after the religious rally since $1262 lows in May 2019, before the metal reverses lower again.
Gold might be either producing a bearish triangle as a lower degree Wave 2 OR is consolidating in a bullish triangle Wave 4, before producing a thrust wave higher. High probability remains for a bearish reversal after the triangle termination with potential top in place at $2075.
Gold has been in a corrective phase since 2011 highs a $1920. The yellow metal seems to be unfolding into an expanded flat corrective wave since prices have exceeded the $1920 highs. It seems to have formed a potential top or might print one more high before reversing.
Either way, bears are poised to resume lower from current levels or after a thrust rally above $2075 levels. The expanded flat structure seems to have terminated Wave (A) between $1920 and $1046 levels. Since December 2015 lows, it has been into Wave (B) corrective rally.
The above Wave (B) might have completed A-B-C wave structure around $2075 recently. If the above proposed wave counts are correct, Gold should remain below $2075 and break below $1862, going forward. Watch out for a triangle termination below $2075 mark.
Wave (C) should resume lower towards $1450, $1262 and beyond. Ideally, an expanded flat would terminate Wave (C) below Wave (A), which is $1046 mark. Sooner than expected, the metal should be an ideal candidate to be sold on rallies.
Short against $2080, targeting below $1046.