Gold dropped at start of the week and then rallied sharply. Let’s take a look at where the yellow metal stands right now. We know commodities are in the process of ending big cycles but there is no confirmation that the cycles has ended. Decline from July peak in Gold is not a 5 wave decline as recovery to 1255 was a bit too big in time and the last low to 1131 came without RSI divergence. While below July peak (1345), Gold cycles remain bearish for another extension lower. Move up from 1131 low is nothing more than an ABC. Initial move up from 1131 – 1208 was an 11 swing structure which could be a WXYZ or a leading diagonal which is why we were sellers in 1194 – 1208 area as we knew that we would get at least a 3 wave reaction lower as per Elliott Wave Hedging concept. We got the reaction lower that we expected but no new low in Gold (when Silver made a new low).Elliott Wave Hedging suggests the highlighted area should produce at least a 3 wave reaction lower regardless of what happens next so we still favour the short side as indicate with red arrow.