Gold could slow down after 11 weeks of steady rise. The chart below suggests that gold has completed three out of five possible waves of advance. From now on there are two possibilities. First: gold will be limited to a corrective A-B-C. Two: Gold will decline in wave (4), but will rise again in wave (5), thus completing an impulsive rally. Right now we can not pick our favorite. It is up to the Market to decide. All we know now is that a decline should start soon. We can not know how deep it will be. You can see the two counts below.
If we add some Fibonacci ratio analysis, we will see that there is an almost perfect proportion between the lengths of waves (1)/A and (3)/C, with (3)/C being 162% of wave (1)/A.
People tend to get a little overconfident at tops, so our advice is “Gold could slow down, do not get overexcited about it right now”.