Gold Keeps Consolidating Within A Higher Degree Correction

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We talked about gold on June 18th, where we mentioned and highlighted an ongoing five-wave impulsive bullish cycle on a daily chart, which looks to be unfinished, as we are tracking higher degree wave 4 correction that can send the price higher for wave 5.

Gold has turned lower in the last two months, which has been expected as we saw market in the fifth wave of an extended wave 3 after breaking to new ATH. Well, what we see now in the 4-hour chart is a corrective pause which can come to an end in the near future, but possibly at lower support levels as the current price action here above 2300 can be a triangle in the middle of a three-wave downward correction. We see nice support at 2222-2250 area. But, don't miss the alternate count, where wave 4 can be even a running triangle if price turns up now and breaks 2370 level. Bullish confirmation is above 2390 region.

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A triangle pattern can be bullish or bearish one, but in the bullish trend, in both cases suggest a correction within uptrend. In case if a triangle is a bullish one, then it's most likely in wave 4 that can send the price higher for wave 5. However, if triangle is bearish one, is most likely in wave B of a deeper A-B-C corrective setback, but still for a higher degree wave 4 correction before the uptrend for wave 5 resumes.

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