Gold might have either carved a lower top around $1930 recently or could be underway towards $1970/75 in the near term. The yellow metal remains potential sell on rallies candidate going further. Bears might be inclined to remain in control until prices broadly stay below $2075 mark.
Gold has earlier dropped from $2075 through $1848 levels, sub dividing into 5 waves. The impulse drop could be the first major more towards a deeper correction. Also note that an impulse wave is ideally followed by a corrective wave unfolding into 3 waves, against the major trend.
The fibonacci 0.618 of entire drop between $2075 and $1848 is seen passing through $1970/90 zone. If Gold bulls manage to push through the above resistance, high probability remains for a bearish reversal. It might be a larger degree Wave (2) termination before turning lower again.
The recent price action suggests that Gold has managed to hit fibonacci 0.618 retracement of the recent drop between $1975 and $1848 respectively. Possibility remains for a bearish reversal from here but we need to see price breaking below $1877 to confirm.
Having said that, Gold remains good to be sold on rallies through $1970/90 levels. Another count suggests that the recent rally could be Wave a, within the 3 wave correction. If the above is correct, we should see a drop as Wave b unfolds, followed by a Wave c rally towards $1970/90 respectively.
Either way, the yellow metal is expected to remain in control of bears until prices stay below $2075 handle. It is possible for Gold to reach $1970/90 levels before reversing lower again.
Short against $2075, target is open.