FX.co ★ Gold Elliott wave analysis for August 29, 2013

Gold has turned down as it was expected by our analysis yesterday from 1,433 to 1,405. We mentioned before that bulls have more to lose at these price levels than bears. The upward move from 1,270 seems complete and we expect, at least, a pullback towards the 38% Fibonacci retracement at the 1,370 price area.

The price broken out below the upward sloping channel and we expect this weakness to continue towards the important support of 1,380-70. For the short term, the price broken our first support at 1,415-12 and are now testing the next support at 1,400. We believe that a downward move starts now and bears should use the highs as stop.

As we mentioned above, the price broken the short term support and are heading downwards. The trend is downward, at least, for the short term and we believe that the tension in US markets will ease and this will bring some sellers for profit taking in GOLD. The downward sloping red trendline is the short-term resistance for Gold, but bears should use the highs around 1,380-70 as a stop and a target. We are bearish and we think it is time for correction.