Will 5th Wave Limit Upside For Gold?

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No doubt, gold is bullish, unfolding five waves from the 1211 level as part of a bigger recovery. We can see that recently price found a base for corrective wave 4 at the 1277 level from where a sharp and strong leg up is currently unfolding. This strong move can be labelled as final sub-wave 5) in progress, which can look for resistance near the 1310/1320 area; it's a Fibonacci extension of 1.618% of wave four and also the upper Elliott wave channel line in that area, that can slow down the bullish trend.

Keep in mind that after every five waves market may retrace in three legs minimum, so don't be surprised if FOMC Press Conference and US NFP numbers will cause a turn.

A drop and daily close below 1300 would signal that a top has been found and that deeper pullback is coming.

For now, it's good to be patient here as I see metal ''too high to be long, and too soon to be short.''

Trade well, GH