Gold and Silver - Ready for next leg lower?

Could the big top be in place in gold? Yes, but I do think it's more likly we are in a wave iv correction. I expect the 1,420 - 1,430 area to be the target for this correction.

Looking at the shorter term picture (see below) we have slightly exceeded the 50% retracement target for wave A at 1,518.68. that could mean a continuation higher towards the 61.8% retarcement target at 1,532.21 as long as support at 1,506.90 isn't broken, but short term we are heavily overbought and wave B could end any time now.


Silver is pretty much the same picture. Silver accelerated much more than gold, which means the possibility for a big top is much higher here. Still I think, that we are only in a wave iv, which should correct towards the 29-30 area whith a possibility of a decline towards the 25 - 26 area.

Looking at the shorter term picture we can see the possibility for a "Bearish sling shot" building. At the same time we have retraced 38.2% of the wave A, therefore we could be on the edge of the next decline (see below)