In the Intraday charts, Gold is correcting up in Minute-degree wave ((ii)) after tracing out a leading diagonal as the same first-wave down.
A leading diagonal to the downside after an uptrend which resulted in an ending diagonal(of one larger degree), would suggest an excellent setup for short position.
Medium-term Uptrend :
The Gold’s 25% countertrend rally(in a five-wave structure) that started in early-December, should be first portion of the process of correcting up in the Primary wave ((B)). Subsequently, Intermediate wave (A) would be corrected now in its same degree wave (B) (potentially to the Fibo 0.50 retracement level).
Note : As denoted on the chart below, the wave (A)’s extreme well achieved the origin of the prior bullish diagonal as Intermediate wave (5). (technical targeting based on the patterns)
Correcting Down :
After unfolding an ending diagonal in Minor degree wave 5, Gold should be now in the early stages of correcting in likely an A-B-C zigzag (of one larger degree) to the downside.
Technically, the expected target at 1206 would be pointed well as Minor wave A’s extreme.
Bullish View :
The U.S. Dollar Index should have concluded its correction of Intermediate wave (4) as a flat at 91.92. The medium-term trend has turned up now, and subsequently advance in the same degree wave (5) could have started its way up.
The advance should eventually carry index toward the 103.32 level, where the same degree waves (5) and (1) are equal (a common relationship).