Gold has turned nicely bullish two months back with clean five waves up from 1120 area, which means that trend has changed from bearish to bullish mode. However, nothing moves in straight lines so drop from January highs down to 1180 was not a surprise; a contra-trend move in three waves that can represents a completed blue wave 2.
That said, looking at the count we can now expect price to resume the uptrend in wave 3), as we can see red wave 2) showing first signs of completion at the 1216 level. A break above the 1244 level would be a confirmation for higher levels to follow.
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