Many blog followers have asked me to post my view on Gold so here it goes. We have been bullish on Gold since 1525-50 level and were expecting a new bullish upward wave to unfold. My belief is that gold is now at a corrective pattern that could complete near the 61,8% retracement or 1640$. Lets take things from the beginning. Gold has started its final 5th wave up were we note that wave E of the huge sideways triangle has ended. From that time prices have moved impulsively upwards towards 1800 were resistance was too strong for prices to overcome. Our count is that this wave was wave 1 of 5. We believe that wave 2 is under way with an initial dip at 1672(50% retracement). Prices have bounced upwards but with no clear impulsive pattern. 1705$ is important support level as prices have moved upwards from that bottom in a 3 wave pattern. If 1705 is breached, then we would confirm that this upward move is corrective and with final target 1640 were wave 2 could finally end.Overall longer term trend remains intact with targets much higher than 2200$/per ounce. Short term trend remains bullish as long as prices trade above 1705 and as long as resistance at 1752 is broken and prices unfold impulsively. Currently gold has 1718 short term support that could prove helpful for bulls to re energise. Short term resistance at 1734-44-53$. The form of the rise will be very important as this rise if not impulsive could be wave B of 2.
As always, thank you for taking the time to read my thoughts!!!