Gold has stayed below 1250 this week so far. Will price break upside after the current range? The following give insights based on Elliott wave theory.
December 12, 2018 | AtoZ Markets – Gold so far has not been able to build on the bullish move that resumed last week. From 1196 (mid-November), Gold has gained an impressive 500 Pips to hit 1250 mark last week. The gain recorded by the dollar-denominated commodity was built on an improving US-China trade progress getting the greenback on a big surge. The US treasury yield rebounded from a 3-month low. While the key event is the FOMC monetary policy update coming next week, the market will look forward to the US-consumer inflation figures coming later today during the New York session.
After hitting 1250 last week, Gold has pointed downside. The bearish move is range-bound. A bullish breakout will set the upside move back on track. Today, price has rebounded from 1240 to 1244 but 1250 is still untouched this week. From technical point of view, Gold is nearing a reversal level where price is expected to drop significantly. At 1262-1265, there is a Fibonacci confluence zone which might act as a resistance level after price might have completed a triple zigzag corrective pattern.
Gold Elliott Wave Analysis and Important Price Levels
A triple zigzag which started mid-August at 1160 is looming. Price might continue to the roof of the zigzag channel which also coincides with Fibonacci confluence zone at 1262.1265. The current dip from 1250 looks like a shallow corrective pullback, still giving the bulls an upper hand. A break above 1250 will eventually see Gold trading between 1262-1265. Unless a fast drop below 1230 happens, the bulls might extend their gains before bearish take-over.
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