Gold has extended it's gains well above the 1300 mark in the last few weeks from the 1251, triangle low. Notice that we have adjusted the wave count, but actually the massege is the same. We see a corrective advance from 1181 moving into the 1345/50 resistance. We are observing a zigzag with a triangle placed in wave (b). We also know that wave (b) pattern CANNOT be labeled as wave two, because triangles never occur in the wave two position. So, we believe that the rally is a contra-trend and that gains will be limited. However, before we can confirm a bearish reversal we need an impulsive structure to the downside. In other words, we need five waves decline back to 1300 area.
Gold 4 Hour Analysis