Gold declined sharply last week on the back of strong rebound in Dollar following solid US job and services data. The development indicates short term topping at 1959.47. Deep pull back is now in favor to 55 day EMA (now at 1847.23), or further to 38.2% retracement of 1616.51 to 1959.47 at 1828.45.
Still, as long as 55 week EMA (now at 1798.35) holds, the favored case is still that corrective pattern from 2074.84 has completed with three waves down to 1616.51. That is, rise from there is resuming the larger up trend and should break through 2704.84 “sooner” in medium term.
However, sustained break of the 55 week EMA will argue that corrective pattern from 2074.84 is developing into a five-wave triangle pattern, and delay upside breakout.