Price action in Gold has not made things any clearer with the current wave structure. There are two very possible scenarios still very possible and valid. The first scenario implies that wave 5 is not over yet and we should expect a new lower low towards 1,180-1,200. The second scenario implies that the decline from 1,360 is over and the upward correction still valid. This wave count is shown with red letters below.

The breaking below 1,220-1,210 will increase the chances of the first scenario. If prices continue to trade above 1,220-1,210, it will put the basis for another leg up towards 1,275-1,300. The trend is not clear and that is why we should respect if any important price level is broken. Therefore, bulls have more chances as long as prices trade above 1,220-1,210.

The daily chart continues to show that the longer-term trend is downward. The important high is at 1,268 in the short term and 1,360 in the longer term. Our longer term view remains bearish with 1,140-1,100 as target from the Head-and-Shoulders pattern.