Gold Elliott Wave analysis
Function - Counter-Trend.
Mode - Corrective.
Structure - Likely Double Zigzag.
Position -Wave 4.
Direction - Wave 4 is still in play.
Details - Gold count adjusted to fit the sideways structure emerging for wave 4. The structure still supports further rallies.
Gold has remained in a sideways range since the decline on April 12th, 2024. Despite this consolidation, the metal is poised for more gains and potentially a fresh all-time high. Gold is in a long-term bullish trend, with no significant bearish correction expected until the impulse cycle from September 2023 completes.
Daily chart analysis
Gold prices have been largely bullish, with a cycle degree impulse wave III emerging from 1810.5 in September 2023. Currently, the price is in a minor degree wave 4, which initially appeared to be a zigzag structure. However, the sustained sideways price action suggests this is a triangle structure for wave 4. Before the eventual breakout to the upside, Gold might make one more leg lower within the range. The goal now is wave 5.
Four-hour chart analysis
The H4 chart shows the sub-waves of the emerging triangle structure, which is currently on the fourth leg - wave d (circled). Wave e (circled) should follow, but it should stay above 2286 to avoid invalidating the triangle structure. Thus, the invalidation level for this setup is 2286. Provided the price remains above that level, the potential for more upside is far greater. Wave 5 should reach at least the 2500 key psychological level.
Summary
Gold has been in a sideways range since the decline on April 12th, 2024, but is expected to make further gains and potentially reach a new all-time high. The long-term trend is bullish, with no significant bearish correction expected until the impulse cycle from September 2023 ends. On the daily chart, Gold is in a cycle degree impulse wave III from 1810.5, with the current minor degree wave 4 forming a triangle structure.
On the H4 chart, wave d (circled) of the triangle is in progress, with wave e (circled) expected next. The triangle structure remains valid as long as the price stays above 2286. If this level holds, the potential for more upside increases, with wave 5 likely to reach at least the 2500 level.
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
AUD/USD holds the uptick above 0.6450 after mixed Chinese data
AUD/USD is holding higher ground above 0.6450 in Friday's Asian trading, shrugging off mixed Chinese activity data for October. Traders are looking to cash in after the recent downfall even though the US Dollar stay firm and market mood remains cautious. US data is next in focus.
USD/JPY reverses Japan's GDP-led spike to 156.75
USD/JPY pares gains to near 156.50 in Asian session on Friday, revesing the early spike to 156.75 fuelled by unimpressive Japanese Q3 GDP data. The pair is facing headwinds from Japanese verbal intervention and a tepid risk tone, despite the sustained US Dollar strength.
Gold price struggles to gain ground on bullish US Dollar, US PPI data looms
Gold price struggles to gain ground around $2,570 on Friday after bouncing off a two-month low in the previous session. The precious metal remains under selling pressure amid the strong US Dollar and the rising uncertainty surrounding the Federal Reserve's pace of interest rate reductions.
Bitcoin Price Forecast: BTC eyes $100K, what are the key factors to watch out for?
Bitcoin trades below $90K in the early Asian session on Friday as investors realized nearly $8 billion in profits in the past two days. Despite the profit-taking, Bitwise CIO Matt Hougan suggested that BTC could be ready for the $100K level, fueled by increased stablecoin supply and potential government investment.
Trump vs CPI
US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis.
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.