I will consider the recent move from the Jul 20 (1987) to Jul 27 (1942) as a expanding leading diagonal and I will label it as wave i. It looks like a corrective wave, which may mislead people to think that the correction is over and gold is preparing for a rally.
And the three wave (abc) retracement of 0.618 of wave i to 1972 as wave ii. We should see a drop to 1860 as wave iii (2.618 extension) as depicted in the chart.
And the three wave (abc) retracement of 0.618 of wave i to 1972 as wave ii. We should see a drop to 1860 as wave iii (2.618 extension) as depicted in the chart.