Gold had dropped to $1892 levels over the last week before finding support again. The yellow metal is seen to be trading around $1907/08 mark for now and is expected to push higher through $1930 in the near term. Above $1930, potential remains for a push towards $1950/80 zone.
Gold had hit all-time highs at $2075 levels before reversing sharply lower. The yellow metal had dropped through $1848, unfolding into 5 waves making an impulse. This could be marked as Wave (1), within the proposed 5 wave decline towards $1046, over the long term.
Ideally, an impulse drop is followed by a corrective rally. It is quite possible that the rally between $1848 and $1930 could be Wave a of the a-b-c correction. The recent drop through $1892 could be Wave b and Wave c might be underway towards $1950/80 levels, going forward.
Also note that fibonacci 0.618 retracement of the entire drop between $2075 and $1848 is seen around $1980/90 mark. Hence probabilities remain high for a bearish reversal, if prices manage to reach there. We can expect the down trend to resume thereafter.
Gold seems to be carving an expanded flat corrective structure since $1920 highs in 2011. The entire drop between $1920 through $1046 was larger degree Wave (A), the subsequent rally towards $2075 can be labelled as Wave (B) and if the above holds, Wave (C) could be underway.
Gold remains an ideal candidate to be sold on rallies until prices stay below the $2075 handle. The yellow metal is expected to remain in control of bears for the next several weeks/months to come.
Short against $2075, targeting below $1670