Yesterday we got precisely that - gold sold off by $35 after the release of stronger than expected US data, eventually finding support at 1635, just a few dollars off our Wave C target of 1630.
Overnight, gold made a "double bottom" at 1635, giving a tentative indication that a bottom may be forming. With the RSI on the daily chart at 23, the lowest level since May 2011, the immediate downside from here looks to be limited. Whether 1635 proves to be the long awaited Wave C low remains to be seen.