Gold Elliott Wave analysis
Gold has been retreating in the final days of September after hitting yet another fresh all-time high. The current impulse wave cycle, which began in October 2022, appears to be ongoing, suggesting that after this pullback finds support, further rallies could follow.
Daily chart analysis
From an Elliott wave perspective, the daily chart shows that Gold initiated a cycle degree impulse wave sequence in October 2022. Waves I and II of this sequence concluded in May 2023 and October 2023, respectively. Currently, the metal is in the third wave, and within it, wave III appears incomplete. Specifically, Gold is in wave 5 of (3) of 3 (circled) of III, indicating that there is significant upside potential remaining. This suggests that Gold's bullish trend is far from over, and traders should be vigilant for potential pullbacks, which could offer attractive buying opportunities as the upward trend resumes.
Four-hour chart analysis
On the H4 chart, Gold is experiencing a pullback, likely forming sub-minuette degree wave iv of minuette degree wave (iii) of minute degree wave iii (circled). Once wave iv finds support, it is expected that the bullish momentum will resume, leading to a continuation of the rally. Buyers may look for entry points near the dip as the upward trend is anticipated to continue once wave iv completes.
In summary, Gold remains in a long-term bullish trend, with further rallies expected after the current pullback concludes. The Elliott wave analysis suggests that wave III is still unfolding, providing substantial room for upside potential. Traders should keep an eye on key support levels, as these dips could present buying opportunities before Gold resumes its upward trajectory.
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 bulls maintain the pressure ahead of critical US employment data
EUR/USD clings to small daily gains slightly below 1.1200 on Monday. ECB President Lagarde told the European Parliament that their confidence on inflation returning to target has strengthened after the latest developments. Markets await Fed Chairman Powell's speech.
GBP/USD fluctuates at around 1.3400 ahead of Powell
GBP/USD trades in a narrow channel at around 1.3400 in the second half of the day on Monday. The US Dollar benefits from the cautious market mood and holds its ground as investors' focus shifts to Fed Chairman Powell's speech.
Gold extends slide, trades near $2,640
Gold extends its downward correction to start the week and trades deep in negative territory near $2,640. Profit-taking ahead of the long Chinese holiday and the cautious market mood seems to be weighing on XAU/USD as markets await Fed Chairman Powell's speech.
Johann Kerbrat, Robinhood Crypto GM: “US regulation to be late compared to EU and Asia”
Johann Kerbrat is the Crypto General Manager at Robinhood, the trading app used by many US retail investors during the 2020 meme stock mania.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.