Gold Intraday Crash Update.

In my last gold update, I thought another move north would happen before gold resumed its decline. This did not happen, instead gold dropped like a rock. Since the January peak the pattern has far too many overlapping waves, which sure can fit into a corrective pattern.

The wild bullish moves in the US dollar, was the main reason for gold’s decline. Gold and the US dollar move inversely to each other many times, and therefore once the US dollar rally comes to an end, gold should make a very positive run.

Right now gold has come to a stop at the $1304 price level, but a quick drop below $1300 could still happen. Overall a flat could be forming, where the “C” wave is part of a regular flat. If another fake bull run starts to happen, and it also becomes another zigzag, then we may have to look at a potential 3 sets of zigzags, with a potential “D” wave bullish cycle about to take off.

There is no way that I would count out a wave two correction with a triangle, so any triangle will force a change to that January peak. Another zigzag should travel well above my “B” wave in Subminuette degree which is at the $1360 price level.

As I post gold is still on a rally so hopefully we will get more than just another counter rally. As long as stocks and the US dollar have the potential to decline, then golds strong bullish phase can still happen.

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