At anytime we can always have a choice of three types of corrections going up or down. Any impulse will point the way for a bigger directional run, but choppy rallies will have a limited life span which can still travel for years against the main trend. Traveling against the larger trend produces these wild and crazy waves that overlap each other and basically make no sense when we look at them.
I do not like combining alternate waves in one chart as this would just add more confusion. Even if it turns out wrong, sometimes we can regurgitate the same wave count months down the road.
With the wave count above, I am showing you a potential "ABC" rally that still has a long way to go. The present decline has to confirm a potential wave two bottom, which still could take gold to the $1090-$1086 price level. Of course, any wave 1-2 potential would send gold crashing as it would just be getting started in its decline.
As it sits I have a potential wave 1-2, 1-2 count, which would make any potential rally large enough to force all the bears out of gold. Crude oil has made another new bear market record low at $ 30.90, which translated to a 35.47:1 gold/oil ratio.