Gold has been trading higher for the last few days as we have been expecting. We view the consolidation between 1.19.2014 (1262) – 2.7.2014 (1254) to be a bullish running triangle. Rally from 1252 is unfolding as a 7 swing structure when we are in 7th swing now. Near-term focus is on 1328 (equal legs) to complete wave A. After that Gold should make a corrective B wave pull back which can reach as low as 1282 – 1291 and rally should them resume again. We don’t like selling Gold in proposed wave B but would favour the long side after wave B completes and as far as pivot at 1252 low remains intact.
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