Gold Sharp Turn ahead?

Gold may be nearing the completion of an A-B-C correction as per it's monthly charts. Between Dec '11 and Dec '15 Gold declined in a 5-wave impulse move. Since then it has been in a corrective A-B-C bounce. We are currently in the C-leg of this bounce. The price equality target for C-leg comes to around $1590. However it is not uncommon for C-waves to extend to only 78.6% of Wave A.

Considering that Gold prices have already crossed the 78.6% extension level around $1525, the room for further upside may be limited. In indian context, this may have price implications for Gold loan companies which have been able to rally against the general market trend thanks to strength in Gold prices. Going forward one may expect weakness in stock prices of these companies as new trend emerges in Gold.