Gold: Wave C Decline With Ending Diagonal Structure – Short-Term Weakness Vs Higher-Degree Correction

Gold has broken below the 4000 level and remains under bearish pressure within wave C of a larger ABC corrective decline. On the 4H timeframe, both counts suggest that price action is forming an ending diagonal (wedge) structure within wave C. This implies that any upside movement is likely to be a short-term corrective pullback before another potential leg lower, with downside extension still open toward the 3600 area.

From a structural perspective, the current price behavior indicates exhaustion within the ongoing C wave, but not yet completion, as overlapping price action and converging trendlines support the idea of a developing diagonal.

Big Picture (Higher Degree):

On the higher timeframe, gold continues to trade in an overall impulsive sequence; however, it is currently progressing through a wave four correction. This corrective phase may gradually approach completion later in the year. Strong structural support is expected within the 3900–3200 zone, which aligns with prior consolidation and demand areas on the higher-degree chart.

Overall, while short-term relief rallies remain possible due to the ending diagonal structure, the broader context still favors a corrective phase until higher-degree confirmation of completion emerges.