Gold's Consolidation Still in Progress.

Gold's consolidations from 1072 high is still in progress. As noted before, a short term top might be in place with bearish divergence conditions in 4 hours MACD and RSI. Some more consolidation would likely be seen with risk of another fall. But after all, we'd expect downside to be contained by 38.2% retracement of 931.3 to 1072 at 1018.3 and bring rally resumption. Above 1072 will target 1100 psychological resistance next.

In the bigger picture, the strong break of 1033.9 high confirms that long term up trend in Gold has resumed. Rise from 681 would likely develop into another set of five wave sequence with first wave completed at 1007.7, second wave triangle consolidation completed at 931.3. Rise from 931.3 is expected to extend to 61.8% projection of 681 to 1007.7 from 931.3 at 1133.2 first and then 100% projection at 1258 next. On the downside, though, break of 985.5 support will dampen this bullish view and will turn focus back to 931.3 support instead.