Gold sheds 20% from highs as Dollar support looms

Gold has seen a very strong drop two weeks back and so far has dropped around 20% from the all time highs. This type of liquidation is not surprising in commodities, especially considering how volatile these markets have been recently. What is happening now is that the dollar is coming into some very strong support, and if a dollar recovery shows up, and US yeilds start to stabilize, then metals could remain trapped in a corrective phase for some time. That would be totally normal from an Elliott wave perspective, as the move down from the all time highs still looks like only the first leg of a higher degree correction. There was temporary support in the 4200 to 4400 area, from where we see some recovery, but it already looks like a corrective rebound, possibly a wave B as shown on the 4 hour chart. But after current recovery, more downside would still be expected, with 5200  standing out as an important resistance zone to watch.

As we look at intraday basis - gold is coming higher and now trading around 5000, which is an important level to watch. It is both psychological resistance and a technical level, especially now within a triangle pattern here. We know triangles are structured in five subwaves, so wave E may still be missing and could show up before the market eventually breaks higher and retests the 5100 level

For video format, you can watch it here - https://youtube.com/live/WDVcUQMSDqw

Support to watch on any intraday dip would be around 4900