Gold is currently in an upward wave 4 bounce of the declining move that started at 1,269. We expect prices to continue lower towards 1,140-1,150. The current wave structure is shown in the chart below. Prices are trading within a downward sloping channel. The trend in all time frames remains downward. However, we should note that we are in the final stages of the decline in Gold. We expect to see an important bottom in Gold within the area of 1,000-1,150.
Short-term support is found at 1,195 and short-term resistance are at 1,210. Short-term target is 1,180-1,150. We expect prices to be rejected at the purple channel resistance and then move lower to new lows below 1,179.
Prices are trading near the lower long-term channel boundaries. That is why we believe we may be near an important bottom. However, the trend remains downward, and we have no technical bullish signal yet. So we remain short-biased for now expecting new lower lows before considering changing to the bullish side.
