Gold has finally broken out of the triangle consolidation and print fresh lows around $1858 over the last week. The yellow metal might be preparing to push lower one last time before producing a meaningful retracement. Bears might remain in control in the near term.
Gold has been in a corrective phase at a larger degree, highlighted by the weekly chart presented here. The yellow metal had completed an impulse rally around $1920 levels in 2011. Ideally it should have produced a corrective drop.
Looking at the price action the corrective wave is most probably unfolding as an expanded flat (3-3-5) structure. In an expanded flat, Wave (B) exceeds the extreme of Wave (A). As seen here, Wave (A) had begun from $1920 and terminated around $1046.
Since then, Wave (B) has been unfolding and prices exceeded $1920, the extreme of Wave (A). Fresh multi-year high has been print around $2075 mark. If Gold has terminated Wave (B), it is most likely to have resumed Wave (C) lower towards $1046.
The drop since $2075 seems to have completed an impulse wave or is very close to terminating. Another push below $1858 might complete an impulse and confirm that Gold has turned lower from here and that bears are here to stay for long.
Ideally, Gold should unfold into 5 waves at a larger degree to complete Wave (C) within the expanded flat. Prices should push below $1046 lows to terminate Wave (C) in the next few weeks and months.
Short against $2075, target is open.