Looking at this gold correction from an Elliott wave perspective, it’s clear that what gold is currently experiencing is a wave 2 decline. As many of us know, the psychological purpose of the second wave is to cast doubt upon the reality of the new bull that everyone was previously thoroughly convinced of. This wave two has a job, and that job is to convince you that the gold bear market is still alive and well. It can retrace all of the first wave’s gains if it has to. The good news is that when the second wave is complete, the third wave is usually very powerful, leaving the prices reached in the first wave in the history books.