Gold Intraday Crash Update

Since October 16th, gold has been in a steady decline. In order for the top to be a wave one, gold cannot break below the $1261 price level. We are getting closer all the time as every bottom has not held, for very long. The waves are much bigger than the initial decline was, and they overlap each other. This suggests a zigzag decline which can also travel to a new bearish low.  If that happened then the wave 1 top will not work and a Potential “B” in Minute degree would have to replace it.  All the gold bears love this decline, but emotional traders can turn quickly if a surprise fundamental report comes out. 

Fundamentals cannot explain the choppy decline, and if you showed this chart to an expert they could not tell you what made the rallies. The US dollar is the wild card, as it broke to a new bullish high today, keeping the downward pressure on gold. I have another few wave counts available, but they are short term bearish as well.   Only the best wave counts survive as we constantly put the best wave counts on the chopping block.

In the long run there is still a huge bullish phase to come, but from today gold has to move well over $110,  just to get near that $1375 price level again. Until we do gold is still in a corrective state. Which will come first, the bearish $1050 bottom or the bullish $1375 top? 

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