Gold has made a new low in the five-wave decline from 2,070 and is now in close proximity to the 38.2% target of wave 1 through wave 3 added to the high of wave 4 at 1,659. This could be enough to complete the five-wave decline and set the stage for a new impulsive rally in wave 5.
To confirm that a bottom has been seen we need a break above the resistance at 1,735. However, a strong break below support at 1,659 could extend wave 5 lower to 1,613 and even closer to the 61.8% target at 1,567. Such a deep decline in wave 5 is not our preferred count, but at this point, we need to let all possibilities be open.
