Gold hits $1280 levels and reverses. Top formed?

Gold prices managed to hit above the 100% fibonacci extension of Wave A ($1277), at $1280 levels yesterday. Please note that the lower degree wave counts with Wave C were pointing towards $1270 levels and we have been neutral since then. Also note that we can count 5 waves within Wave C as well, with larger degree fibonacci extension met at $1280 levels. If the above projection holds true, Gold could reverse lower from here and a meaningful top might be in place at $1280 levels. As an alternate though, a consistent push higher could also test up to $1400 levels before reversing. Please note that at this time, the probability of the alternate count is less. Immediate support is seen at $1254 levels and a break below that could be a first confirmation of a probable reversal ahead. We shall remain neutral for now and wait for a bearish reversal and confirmation before initiating short positions.


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