XAU/USD, H4 time frame:

Gold's situation is quite interesting. During the previous year, we have seen the development of a long correction wave consisting of sub-waves (W)-(X)-(Y)-(XX)-(Z). At the end of May, the bundle wave (XX) was fully done, after which the formation of the final descending wave (Z) was observed.

It can be assumed that wave (Z) will take the form of a double zigzag W-X-Y, in which wave Y is currently forming.

It is worth noting that wave Y consists of sub-waves [A]-[B]-[C], where the development of the impulse [C] began not so long ago. If we consider the structure of this impulse in more detail, we will see that the first two small waves (1) and (2) were built inside it. If this hypothesis is correct, then a fairly rapid decline in the impulse wave (3) can be expected in the near future.

As a result, selling can be considered from current positions with a long-term target at the level of 1678.07, since wave (Z) may update the low formed by wave (Y) in the next few weeks.