Gold is getting closer to the 1200 handle in a wild bearish run. How long will it continue? The following 1 August Gold Elliott wave analysis looks at what could happen next.
This week so far, the yellow metal has been trapped between 1228 and 1214 intraday range. The trend is still bearish and it seems selling bounces is the way to go. In the last update, we continued with how far has the trend gone if price were to complete a bearish impulse wave since late January this year. From our projections, Gold may plunge far below 1200 handle. The chart below was used in the last update.
The chart above shows wave iv ending at 1235 and price dropped below the channel. We might have a 3-wave rally up to 1230 before the bearish move continues. Unless it breaks above 1235, price will much likely drop further – below 1211 and hit the 1200 handle on its way to complete wave (iii).
1 August Gold Elliott wave analysis: what next?
The intraday rally reached 1228 before price dropped. We should expect a fast break below 1214 to continue the bearish run to 1200. The invalidity price for this forecast is 1235. Price might continue a complex correction above 1228 but it must remain below 1235 to make the forecast stand. The next targets are 1200 and 1185 before we could see another big correction. If price breaks above 1235, this forecast will be wrong and we will take another look. Stay tuned for the next update.
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