FX.co ★ Gold Wave analysis for August 13, 2014

Gold price is still inside a corrective wave pattern. We saw a rejection yesterday as we expected it below $1,320. Now, I expect the downward move to push for a final short-term low near $1,300. Currently, we are in wave C. I do not believe the correction is over because the rise from $1,305 to yesterday's highs is a corrective move as it consists of 3 waves. 3 waves show correction and not impulse.

Price is above the Ichimoku cloud. As I mentioned in my previous analysis, after the 5 waves up from $1,280 to $1,322 I expect a three wave correction that will test the Ichimoku cloud support and possibly reach the 61.8% Fibonacci retracement.

In the daily chart as shown above, everything remains bullish as price is above the Ichimoku cloud and our expected target of $1,350 is still quite possible as the rise from $1,240 and the rise from $1,280 are impulsive waves. For now, bulls have the upper hand and I expect Gold price to rise at least in the near future. The long-term trend will be tested at $1,350 and $1,391.