Gold is at a convergence of resistance between $1798-1818

Gold has managed to hit yet another high around $1818 early this week. There is nothing wrong in adopting the conventional method of buying an uptrend. We refrain from doing so because of the following: 1. Gold is in a larger degree corrective wave (zigzag) since 2011 highs at $1920. 2. Wave (A) of the zigzag was in 5 waves and terminated around $1046. 3. Wave (B) of the correction has hit the fibonacci 1.618 extension at $1799.00 4. The metal has also tested fibonacci 0.88 retracement of Wave (A). 5. Gold need to complete Wave (C) by printing yet another low below $1046 to complete zigzag. A break below $1750 would confirm the first step of a potential bearish reversal underway.

Strategy:

Flat for now.

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