Gold Elliott Wave analysis
Function - Trend.
Mode - Impulse.
Structure - Impulse for wave (3) still emerging.
Position -Wave 5.
Direction - Wave 5 is still in play.
Gold has added to gains after breaking out of a two-month range, and it now appears poised for a fresh all-time high. Across all time frames, the market remains bullish, providing opportunities for buyers to enter on dips at various degrees, anticipating a continued rally.
Daily chart analysis
On the daily chart, Gold completed the supercycle wave (IV) of the long-term bullish trend that began in December 2015. This completion set the stage for a new impulse wave (V). Within this wave (V), waves I and II were completed in May and October 2023, respectively. Gold is currently advancing in wave (3) of 3 (circled) of III, with the potential to push beyond 2500 before this wave concludes. The sideways consolidation that occurred between April 12th and June 26th represents wave 4 of (3). The ongoing upward movement is part of wave 5 of (3), which is expected to break through previous highs and set new records. The bullish outlook for Gold remains strong, offering buyers a chance to enter positions on pullbacks.
Four-hour chart analysis
On the H4 chart, we zoom in on the sub-waves of wave 5 of (3). The price completed waves i (circled) and ii (circled) of 5 on July 17th and July 25th, respectively. The current upward movement, wave iii (circled) of 5, is underway and is projected to reach at least 2617 before the next significant pullback, provided the price stays above 2352. This suggests that Gold will likely continue to favor the buy side in the weeks ahead, presenting attractive buying opportunities.
Conclusion
In summary, Gold's building up on gains after a strong breakout indicates that it is gearing up for a new all-time high. The Elliott Wave analysis shows a bullish trend across all time frames, with the potential for further gains. Traders should look to capitalize on this by buying dips, especially as the market progresses towards key levels like 2500 and beyond.
Gold (XAU/USD) Elliott Wave technical analysis [Video]
As with any investment opportunity there is a risk of making losses on investments that Trading Lounge expresses opinions on.
Historical results are no guarantee of future returns. Some investments are inherently riskier than others. At worst, you could lose your entire investment. TradingLounge™ uses a range of technical analysis tools, software and basic fundamental analysis as well as economic forecasts aimed at minimizing the potential for loss.
The advice we provide through our TradingLounge™ websites and our TradingLounge™ Membership has been prepared without considering your objectives, financial situation or needs. Reliance on such advice, information or data is at your own risk. The decision to trade and the method of trading is for you alone to decide. This information is of a general nature only, so you should, before acting upon any of the information or advice provided by us, consider the appropriateness of the advice considering your own objectives, financial situation or needs. Therefore, you should consult your financial advisor or accountant to determine whether trading in securities and derivatives products is appropriate for you considering your financial circumstances.
Recommended Content
Editors’ Picks
EUR/USD stabilizes near 1.0550, looks to post weekly gains
EUR/USD continues to fluctuate in a tight channel at around 1.0550 in the American session on Friday as trading action remains subdued with US financial markets heading into the weekend early. The pair looks to end the week in positive territory.
GBP/USD loses traction, retreats below 1.2700
After climbing to its highest level in over two weeks at 1.2750, GBP/USD reverses direction and declines to the 1.2700 area on Friday. In the absence of fundamental drivers, investors refrain from taking large positions. Nevertheless, the pair looks to snap an eight-week losing streak.
Gold pulls away from daily highs, holds near $2,650
Gold retreats from the daily high it set above $2,660 but manages to stay afloat in positive territory at around $2,650, with the benchmark 10-year US Treasury bond yield losing more than 1% on the day. Despite Friday's rebound, XAU/USD is set to register losses for the week.
Bitcoin attempts for the $100K mark
Bitcoin (BTC) price extends its recovery and nears the $100K mark on Friday after facing a healthy correction this week. Ethereum (ETH) and Ripple (XRP) closed above their key resistance levels, indicating a rally in the upcoming days.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.