GOLD: 1590 Could Complete Bullish Impulse, Then Correct

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Closer to the end of last week we saw a surge that led prices to the completion of minor wave 3.

The chart above indicates that the 5-wave minute upside structure was followed by a minor correction 4. This could be followed by a final minor 5 near the previous top. That is, the completion of intermediate wave (3) could take place near the 1590 area.

The false-break could be followed by a decline near 1556, as the correction (4) could be equal to the minor correction 4.

This would, of course, form a double bottom, fairly usual with different degree wave 4s, and could then be expected to move higher.

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An alternative scenario could play out too as indicated in the above chart. This assumes an intermediate corrective (4) is already weighing on prices, as (3) concluded its course at the most recent top.

We could see wave (4) completing a correction near the 38.2% Fibonacci retracement of intermediate wave (3).

The limited pullback near the 1545 area would make intermediate wave (5) biased to the upside.

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