Gold might be producing a counter trend rally which could extend up to $1925/30 levels before hitting resistance. Another alternative count suggests that the yellow metal could rally towards $1970/80 levels before reversing again. Bottom line is that $2075 should hold, going further.
Gold has confirmed a meaningful top in place already around $2075 levels. The yellow metal might have completed an impulse drop around $1848 before pulling back higher. It is trading around $1911 mark for now and close to resistance zone at $1925/30.
The probable counts are as follows: If Gold has completed its first impulse wave between $2075 and $1848, the metal might be setting up for a deeper corrective rally towards $1980 mark. We can expect a bearish reversal from there.
Alternately, if the drop is still incomplete, we might witness yet another drop below $1848 before a meaningful pullback could occur. For the alternate count to unfold, Gold must stay below $1975 potential resistance; also the wave 4 triangle termination.
Also note that a push above $1930/40 will confirm that Gold is pushing through $1975 levels in the near term. Either way, the metal remains in control of bears as long as $2075 resistance is intact. Only a push above $2075, would change the above bearish structure.
Gold remains a good candidate to be sold on rallies from here. The metal might drop to $1945 lows before producing a meaningful pullback but probabilities remain high for a temporary low in place around $1848.
Short against $2075, target is open.