Gold seems to be very close to topping or has topped around $1981 handle. The yellow metal is seen to be trading close to $1944/45 levels as we prepare this article, and is expected to turn lower anytime soon. A break below $1925 would confirm a potential bearish reversal.
Gold wave structure has changed according to the weekly chart after the metal rallied above $1920/21 yesterday. We have presented a probable count here: The entire drop between $1921 and $1046 since 2011 could be defined as Wave (A).
Earlier, we had presented a count of probable zigzag underway since $1920/21 in 2011. That count is ruled out for now and it remains possible for the metal to carve an expanded flat. An expanded flat is a 3-3-5 wave structure.
Also note that Wave B within an expanded flat travels above Wave A, which could be the case here. Gold drop from $1920 through $1046 still remains Wave (A) within the (A)-(B)-(C) expanded flat. The subsequent rally from $1046 through $1981 could be potential Wave (B).
If the above count is correct, Gold might turn lower from here and push through $1046 going forward. If not below $1046, we can expect a corrective drop at least. Keeping the above wave structure in mind, it would still be favoured to sell on rallies.
We may remain flat for a while and allow the metal to break below $1925 initial support. A counter trend rally thereafter should be taken as an opportunity to sell Gold.
Allow break below $1925, then sell on rallies.