In the recent article I published on Gold "How Far Will the Prices of Gold Fall, 1000/OZ", I made mention how XAUUSD is completing a major Elliot Wave pattern that could lead to a massive sell-off if the count is correct. Last week sharp decline on Gold as the coronavirus threat increased globally further confirming the setup.
In the daily chart above, we could see how the price made a double top at the upper trend channel before the plunge that breaks out of the channel support on Friday. This decline on the lower time frame can be see as a five-wave impulse, see the chart below.
According to Elliot Wave theory, five-wave impulse pattern indicates the direction of the larger trend. In Gold's case, the direction of the impulse is bearish and as long as 1703/OZ high remains intact, we should be seeing a short-term corrective rally on Gold, followed by a long-term decline.
What's your thought on Gold?
Check related ideas for previous analysis on Gold.