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Gold (XAU/USD) Might Have Completed an ABC Correction

Gold has been consolidating, or rather, in a bullish correction since making a low on the year and a multi-year low around 1072. The daily chart shows a completed ABC correction pattern going up to about 1190. 

Gold (XAU/USD) Daily Chart 11/2

(click to enlarge)

Other than the completed ABC correction, we can see that price for the most part respected the 200-day simple moving average as resistance. Also, holding under 1200 shows respect to the consolidation between April and July, which means bears are still in charge in the long-term (since 2011). 

Let's take a look at the weekly chart, which confirms that the prevailing trend has been bearish since 2011. In the weekly chart, price is still under the 200-, 100-, and 50-week simple moving average, so the recent months of bullish correction left the overall downtrend intact. The 1072 low is therefore in sight, especially if price can break below the 1120 level and hold under 1160-1170 area on a pullback.

Gold (XAU/USD) weekly 11/2

(click to enlarge)