Gold (COMEX:GCZ13) reversed sharply to the downside at the start of September through the rising trend line of a corrective channel. As we know, that's an important signal for a change in trend, which means that bearish price action is now back in view that could accelerate to the downside in the next few weeks if we consider possibly completed flat correction in wave 2. A fall and daily close beneath $1,251 is needed for a wave 3 down back to $1,180.
GOLD Daily Elliott Wave Analysis
On the 4h chart below we can see recent reversal down from $1,360 where a five wave move from $1,251 probably accomplished that flat correction in wave 2 as mentioned and presented on the chart above. Notice that current weakness also extended through the small base channel line (blue circle), which usually occurs in impulsive price action. With that said, further weakness is expected as we think that price is in now moving lower in red wave i) that may find a support around $1,280-$1,290 and then will make a retracement up in red wave ii), which could be a very good position for short opportunity.
GOLD 4h Elliott Wave Analysis
On Intraday chart, gold was slightly higher yesterday but price did not go beyond the wave (A) so a triangle in wave iv remains valid count. Waves (D) and (E) yet to come before we go down through $1,305 support that will open the door for $1,290.