Gold's Decline Not Over (Yet)#Gold is in a declining pattern that appears incomplete. Here are 2 models we are following closely.
1. A decline in wave (iii) of ((c)) - targeting $3,120
2. A decline in wave iii of (ii) - targeting $3,220-3,240
Both models imply the current decline is not over.
FLAT PATTERN
The flat pattern subdivides as a 3-3-5 ((a))-((b))-((c)) pattern. The decline appears to be in the latter stages of this pattern, wave ((c)).
This wave needs to unfold as a motive 5-wave pattern...it appears we are in the 3rd wave decline so a couple of more trends lower. The flat targets $3,120.
LEADING DIAGONAL
The leading diagonal is a motive pattern labeled i-ii-iii-iv-v. The leading diagonal pattern is already complete and now a partial retracement lower of the diagonal is underway. This partial retracement likely carries to $3,220-$3,240.
Under both scenarios, once they are complete, a strong rally is likely to follow. However, the downtrends need more price and time to develop so the rallies are on hold for the moment.
