Gold: The consolidation phase is not over yet

Gold prices fell sharply in October, by about 10%, which is a normal phenomenon after a strong recovery this year. The main question now is: Is this the fourth wave of a continued and ongoing fifth wave black wave cycle, or has the fifth wave completed the exit phase of the triangle at the 4380 area?

Well, note that last weekend gold retreated from trendline resistance after the ABC only rose to the 61.8-78.6% Fibonacci zone, before the market fell low enough to overlap with the 4042 level. This makes me think we are in the midst of a complex adjustment.

This correction could be a triangle, a flat, or even a WXY pattern, so it looks like the metal will stay in this correction for a while longer.

There is also a risk of a retest of lower support first. The first important support level is around 3940, but if broken, the next larger area will be around 3700-3800. So, if we are right, the metal will resume its gains later, but we are still stuck in this correction phase, so it is best to remain patient.

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