Gold hits a fresh high since August 2013 as it soared above 1400. The following looks at what could happen next based on the Elliott wave theory.
June 25, 2019 | AtoZ Markets - The yellow metal continues above 1400. It peaked at 1440 earlier in the week. However, it seems there will be a minor short-term dip but the overall trend still points to the upside. The precious metal is expected to be demanded more in the coming weeks. The major resistance barriers are already taken out.
It should also be noted that Gold price is gaining for the 10th consecutive sessions. The current New York session is going through a minor dip. However, the bulls should quickly come back in control amid dovish expectations from the Australian Reserve bank and the rising tension from the US-China trade war which could boost demands for it as a 'safe-haven' commodity.
Gold Elliott wave analysis and forecast
From the last update, the surge from 1160 is emerging into an impulse wave. The chart below was used.
We expected the 5th wave of this rally to hit $1,450. Wave (iii) has not relented since this update and has gone even more extended. The 4th wave dip has not yet happened and this means that the rally from 1160 could extend to 1500 before a larger bearish correction. Meanwhile, wave iv could emerge with a dip to test the 1400 handle or even below before the price goes further upside. The chart below shows the new update.
Price is currently at a diagonal resistance level of a 9-months old trend. This could lead to the start of the wave (iv of 5) dip toward the 1360-1375 support zone. 38.2% and 50% retracement of wave iii are at 1376 and 1355 respectively. These are prospective support levels which fall within the support zone. The chart below shows the sub-waves of wave iii.
The sub-waves of wave iii show an impulse wave from just above 1267. A dip below 1420 could confirm the start of wave iv as the bullish trend looks temporarily overbought. After the wave iv dip, wave v is expected to push toward 1500.