Gold's rapid completion of the final D and E waves within the larger wave (iv) triangle and breaking the 1600 levels as described back in May now has the bulls paused at just under 1600 - so what's next?
A 4th wave triangle always indicates an impending change in trend - this could be in the form of a minor correction, or as in this case a much larger corrective move.
Perhaps Gold news could kick off a decline although events rarely influence market moves since it is the social mood from the herd that drives markets. Bad news in bull markets is usually shrugged off, but as the mood turns, and the market falls - bad news isn't shrugged off so easily. Perhaps Ron Paul knows something we don't? Ron Paul worries Fort Knox gold is gone
The short term chart has a couple of interpretations. The first is the ending of wave E within the Triangle. If it's the Green E, then it appears an ending diagonal is forming and the ending of the Gold bull market may not be far away - this is a loose statement at the moment as channel lines, estimated targets need to be taken into consideration.
The Second, if the wave (iv) Triangle finished at the Black wave E, then it appears a 5 wave move upwards has completed and a small wave 'ii' down is underway - this is the pullback one expects when hitting/breaking psychological levels. The preference is for the black count to be the primary view at this stage with a view to heading up to the 1640-1650 levels.
Once wave 'ii' down gains some footing, we can establish some channel lines and bullish targets. A break below the black wave 'E' at 1520 would certainly be a bearish signal.