Gold Elliott Wave
Since our last analysis gold was trading in a downward move, corrective wave 2 (coloured blue) of the bigger wave (3) (coloured green) was developing. During the Monday's Asian session we could observe ascending movement from 1,710.19 toward the 1,716.43 level. Therefore, during the European and New York sessions this commodity did not manage to hold this level and price drop to the new daily low at 1,705.20 level. We can consider this move as the end of the 2 wave (coloured blue). At the moment gold is developing impulsive 3 wave (coloured blue) of the bigger (3) wave (coloured green) and we are expecting to see price around 1,732.50 level today. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit 1 at 1,732.52 (161.8% of wave 1) and take profit 2 at 1,749,25 (261.8% of wave 1). To reduce the risk, we can use invalidation at 1,698.74 level as stop loss.

Support and Resistance
(S3) 1,664.2 (S2) 1,681.4 (S1) 1,696.7 (PP) 1,713.9 (R1) 1,729.2 (R2) 1,746.4 (R3) 1,761.7

Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1,714.00 with stop loss 1,698.74, take profit 1 at 1,732.52, and take profit 2 at 1,749.25 are recommended.