Details - Gold completes a triangle for wave 4. Thus, the commodity favors the upside in wave 5 if it escapes the trappings of the congestion. Invalidation remains at 2287.34.

Gold has been sideways for over 11 weeks after retracing the bullish trend that started in October 2023. Meanwhile, the commodity is expected to break to the upside to continue the trend.

On the daily chart, a bullish impulse wave pattern emerged from September 2022 where the supercycle wave (IV) ended at 1616.9, From there, the supercycle wave (V) began. Wave I of (V) ended in May 2023 at 2081.8 before pulling back in wave II of (V) which ended at 1810.58 in October 2023. From October 2023 at 1810, wave III of (V) began and has since seen the commodity to fresh highs multiple times in the year 2024. Price is currently in wave 4 of (3) of III of (V) which has not completed a triangle pattern typical of 4th waves. Wave 5 of (3) is now expected to emerge upside toward 2576-2749.

On the H4 chart, the sub-waves of wave 4 are in a triangle sideways structure. Alternatively, it could be a double zigzag if the price breaches the triangle invalidation level at 2287.34. However, if the price remains above the invalidation level and breaks outside of the triangle, then we can expect the sub-waves of wave 5 to emerge into either an impulse wave or an ending diagonal pattern.

XAU/USD Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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