Short Term Elliott Wave structure in Gold suggests the rally to $1528 on August 16 ended wave 1. The precious metal then pullback to $1492 which ended wave 2. The internal subdivision of wave 2 unfolded as a double three Elliott Wave structure. Down from 1492, wave ((w)) ended at $1492.9 as a zigzag. The bounce to $1508.76 ended wave ((x)) and the next leg lower to $1492.16 ended wave ((y)) of 2 with subdivision also as another zigzag.
The metal has since resumed higher in wave 3. The internal of wave 3 is unfolding as an impulse Elliott Wave structure. Up from 1492.16, wave ((1)) ended at $1555.33 and wave ((ii)) ended at $1524.80. Near term, while above $1524.80, and more importantly above $1492.16, expect Gold to extend higher. The precious metal still needs to break above wave ((i)) at $1555.33 to confirm that the next leg higher has already started and avoid a double correction. Possible target to the upside is 1.618 fibonacci extension from August 2018 low towards 1568 area. We don’t like selling Gold and expect the precious metal to continue supported as far as pivot at $1492.16 low stays intact.
Gold 1 Hour Elliott Wave Chart
