An explanation on the Gold’s quarterly-chart, since 1975 :
” The essential underlying tendency of the wave principle is that action in the same direction as the one larger trend develops in five waves, while reaction against the one larger trend develops in three waves, at all degrees of trend.”
In accordance with the concept of the Elliott Wave Principle :
On the quarterly-chart frame, Gold completed an impulsive five-wave sequence up as a possible third wave of the cycle degree, in summer 2011. Since then, Gold is likely to correct in a three-waves sequence(or a variation) as a possible fourth-wave.
The ongoing five-wave sequence down, may be just as initial subsequent of the great correction of the same cycle degree. It could be considered as the wave A of the primary degree.
How far down can the ongoing Gold’s bear market be expected to go?
” The primary guideline is that corrections, especially when they themselves are fourth waves, tend to register their maximum retracement within the span of travel of the previous fourth wave of one lesser degree, most commonly near the level of its terminus.”
Based on the guideline of the Elliott Wave Principle; Gold tend to develop its following wave sequences on the down trend persistently, and it is expected ultimately retrace to the span of travel area of the preceding fourth wave of one lesser degree, around the 398 area.