Gold still continues to consolidate within a contracting triangle since printing $2075 levels. The yellow metal could be in a wave 4 consolidation before pushing above $2075 to finally terminate. Also note that bears might be preparing to break below $1862 to confirm a top in place.
Gold has been in a meticulous uptrend since $1262 lows in May 2019. It has remained in control of bulls and managed to carve a series of higher lows and higher highs respectively through $2075 levels. Immediate resistance remains at $2075 levels for now, while support stays around $1862 for now.
Gold had completed an impulse rally around $1920 levels in 2011. Since then, it has been in a corrective phase and could be unfolding as an expanded flat as prices pushed above $1920. An expanded flat is also called a traders’ nightmare since it carves price extremes both sides.
If the above larger degree wave structure is correct, Gold should be preparing for a decline from here soon as the last leg of expanded flat unfolds. A break below $1862 is required to confirm that trend has reversed and bears are in complete control.
A meaningful boundary that could be worked upon at the moment is between $2075 and $1862 respectively. Please note that Gold has reached above the fibonacci 0.618 retracement above $2000 levels while consolidating.
If it is working upon a bearish triangle, we might see a final push higher towards $1960 before reversing lower again. Gold remains a good candidate to be sold on rallies from here on.
Short against $2088, target is open.