Gold: A reversal on cards?

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Gold after making a low of $ 1100 levels in the year 2014, have started protecting its previous lows and crossing its pivot highs thus opening positive possibilities. However, from past 2 weeks the rally on the upside is facing a resistance at $1300 levels.RSI on weekly chart has also reversed showing signs of reversal.

As per wave theory, prices have completed one correction (a-b-c) and it is now moving up in the form of next leg on the upside.  In the current up move it has completed one correction (a-b-c) and can give a minor reversal which can drag prices lower till $1250-$1230 levels.


In short, a minor wave on the downside is expected in gold which can take prices lower till $1250-$1230 levels over short term.

Gold Weekly Chart

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