Gold may be developing a leading diagonal as the 5 wave decline is overlapping. This would change if we fall below 1286 because then the third wave would become the shortest violating the wave count. wave A should be retraced in wave B up to 1315 or best case 1331 near 61.8% before the decline continues. Below 1286 prices may slide to 1270 near the 20 week average.
Silver like Gold also witnessed a breakout failure and the rise so far is corrective. Unless there is new bullish evidence this pushes us back to the triangle view. The recent high would be wave D and wave E down would follow. We could spend months in a slow grind down as prices drop towards the lower end of the range near 15.30$.
As Precious metals start another corrective phase so do Platinium prices and they may decline to the lower end of this long term range. The lower line is near 822 where we should look for a possible bottom. Currently at 935
Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd