In order to understand the current price behavior of gold you have to go back to the early 1980. Back then gold topped at 850$ an ounce, this is also the all time nominal top as most of you probably know. After going extremely parabolic and rising more then 100% in less then 2 month the price of gold immediately crashed back to 500$ in less then two month. Few month later a secondary top was created with a base at 600$ and several peaks above 655. – This is long term support & resistance.
Gold Fix Price 1980
Back to the present; consider the significant pullback in the price of: Crude Oil, Copper among other base metals and broad commodity indices. Gold stocks indices and also Silver did not confirm the recent highs. All this factors and more…support a pullback sooner rather then later. Refer to previous posts for short term Fibonacci support levels which seems to be abundant between 648$ and 600$. From an Elliott Wave perspective a pullback to not lower then 600$ is normal and my wave count stays unchanged.