Gold is doing more or less as expected. However we would have expected a deeper decline around this level before the second part of this correction. See also ABX. It is not happening which can maybe be explained by market participants who go from hating the stuff to thinking it is the best thing since sliced bread. Perhaps we are going to go straight to our target of $1450 to $1550. Considering that the price of gold really has not changed much for almost 3 months, we assume that this is a triangle B –wave which may or may not be complete. If this were indeed to happen than the correction could be complete by August or September. It seems like an awfully short period relative to the 4 years it took to complete the first down leg, therefore it is possible that this countertrend correction will become more complex and that this will only be a wave A of either another triangle or a flat.
In any event, for the immediate future things look pretty rosy.