On the intraday chart of Gold we are observing an idea of a triangle pattern of a higher degree, that could be in late stages, as only wave E) is missing. That said this is a five wave pattern, labeled as A-B-C-D-E in contracting shape and a very powerful structure that occurs in the direction of a trend. We think that latest rally from 1227 level can be wave C of D) that may ideally reversal towards lower levels around 1255-1260 zone in sessions ahead. After wave D) is set, wave E) can then find some support near 1231 region and turn to new highs.

Gold, 1H