Blue lines- Fibonacci retracements
Black lines- bullish channel
Following our last analysis on Gold using Elliott wave Theory we warned traders that price was at its final upward wave and a reversal was imminent. Upside potential was limited and bulls needed to protect their gains. Gold price is challenging the lower channel boundary. Gold has most probably completed the entire impulsive upward wave as the clear 5 wave structure suggests. A minimum pull back towards the 38% Fibonacci retracement is expected. Gold price is expected to make a pull back and our most probable target is at $1,725-30 where we find the 61.8% Fibonacci retracement level of the entire upward movement.