Nomura: forecast for gold
Nomura points out that gold (XAU/USD) is still trading within a triangle. The wave D is probably completed after the metal hit $1,270 and only one small rally remains to complete the 5-leg motion – an E-wave. Resistance is located in the $1,306/26 area. “A break of $1,251 negates the triangle but we expect prices to hold above that level for now”, say the specialists.
This pattern follows a downtrend as is a bearish continuation model. Eventually gold price will fall down to $1,100.