We have been waiting for a corrective pullback on gold to buy into. This appears to have taken place, we can count an initial 5 weave bullish sequence to the upside, followed by a 3 wave corrective decline. This indicates another 5 wave bullish move to the upside should occur. Risk assets are in decline and the safe havens appear to be in high demand due to negative FED comments and concerns of a global economic slowdown. This should provide an environment that favours stronger gold prices.
GOLD 4 Hour Chart
Trade Setup: Buy market execution, current price 1847, stop loss 1827 and take profit 1910.
Stop loss: 200 pips
Take profit: 630