Well this has indeed been a dramatic upswing to get the gold bugs going, and the shorts panicking!!!
This looks like indeed it will be the mother of all shakeouts to get the bulls and bears on the wrong side before they finally capitulate so that gold can make a bottom before the long term bull market resumes.
Last Thursday's high broke MAP Wave counting rules which mean the wave count is as follows Q4 (bearish) M-4 (bullish) W5 (bullish) D5 (bullish) i.e. another fractal scale and was my prefered count on my post Gold - What is going on? on the 11th, and is shown below.
Confirmation of this count is a break above 1263.9 of the 10th. A break below 1145.8 will confirm this as the top and we will be moving onto new lows shortly, but will have left the count unconfirmed where the high could be either W-4 or M-4. Either way from a trading perspective it makes no difference and there is a large gap below to retest the December low.
Looking in more detail I have shown the count of wave M-4, of which we are in W5 (W-4 and D5 respectively of no new high is made).
The reason the count was unclear was because of the "noise" for lack of a better word that needed to be filtered out and, and because of the wave superposition principle there were 3 possible fractal scales of this top as shown below, and confirmation can only be done retrospectively in such cases, however from a trading view this does not make a great deal of difference as in cases like this positions should be neutral until clarification is known, and possibly depending on one's risk adversity each level offers a shorting opportunity with the stop loss 1% above the highest target. This is shown below where I have only highlighted the ML's and show the original count.
Prices broke through the D ML so that moved the fractal wave scale, then broke the W ML and so now we just need to wait for the confirmations given above to finally determine the correct count, but as I have said already it does not matter as we will be revisiting the recent low before bouncing up again to shake out a few more from the tree, unless this shake out has done that, but reading article titles no