This is the August Gold contract as the cash chart has too many erroneous spikes at this time. Prices will be a bit different as this gold market is still advancing. I don’t want to see new record lows in gold but a deep plunge can also happen before gold starts to crank up again.
Commercials are close to having record net short positions but it’s the speculators that can panic sell at the drop of a dime. This Fridays COT report may tell us more. There is a good chance that the “C” wave bull market is alive but we need more evidence to support it with the development of wave 3-4-5 in Minor degree. Once gold soars to about $1500 + then I’m sure the gold bulls will be jumping up and down with joy. When they all agree that gold is bullish then gold can crash and wipe the smiles off anyone that buys when prices go vertical.
In the long run, I’m working gold as a big bear market rally so very choppy waves in a bull market are very normal.