Gold

Gold High-Time-Frame Analysis

Gold has been in a strong bull market since its bear market low on September 26, 2022. Currently, Gold is in Wave 3 of its broader Elliott Wave cycle, which represents the most powerful impulsive wave. However, as indicated in the chart, Wave 3 is nearing completion, and the market is preparing to transition into the corrective Wave 4.

Wave 3: Nearing Completion

Wave 3 typically brings strong price action, driven by momentum, which has been evident in Gold’s recent performance. As the chart shows, Gold has made significant gains, but the wave appears to be reaching its final stages. After such a substantial upward movement, the market is expected to enter a corrective phase (Wave 4) before continuing its overall bullish trend.

Upcoming Corrective Phase: Wave 4

Wave 4 is expected to be a correction of the gains made in Wave 3. During this phase, prices are likely to retrace, but they will remain within the broader bullish market structure. This correction will provide the market with a breather, allowing it to consolidate before the final impulsive move in Wave 5.

The chart illustrates the potential retracement levels for Wave 4, which could see Gold pull back to key support zones. The RSI indicators are also beginning to show signs of weakening momentum, suggesting that the market is preparing for this correction.

Long-Term Outlook: Wave 5 and Price Projections

After the completion of Wave 4, the final Wave 5 will likely take Gold to new highs. The price target for Wave 5 has been projected using the 0.618 Fibonacci extension from the length of Waves 1 to 3, with expectations that Gold could reach at least $2,700. However, traders should be cautious during this transition, as the market may experience volatility during the correction.

Conclusion

Gold is approaching the end of Wave 3, with a corrective Wave 4 on the horizon, as seen in the attached chart. This upcoming phase will likely see Gold consolidate and retrace part of its recent gains before resuming its bullish trend in Wave 5. While we expect further upward movement after the correction, caution is advised as the market shifts into this corrective phase.