Elliott Wave: Gold forming five waves from the 2,656.3 low

Hello fellow traders! In this technical article, we’ll be discussing GOLD (XAUUSD) and sharing some charts that we’ve presented to the members of ElliottWave-Forecast.

As our members know, GOLD is showing higher high sequences in the cycle from the December 18th low, which suggests a further rally in the commodity. Recently, GOLD completed a 3-wave pullback and made another leg up, reaching our target area. In the following text, we’ll take a closer look at the Elliott Wave count and explain how to find targets for wave (v).

Gold (XAU/USD) one-hour update 01.23.2025

The commodity is forming a 5-wave pattern in the cycle from the 2656.3 low. We can already count 3 waves down, labeled as abc red. The current view suggests that as long as the price remains above the 2735.8 low, the (iv) blue pullback is considered complete. We believe (v) blue is now in progress, with the first target area projected at 2769.99–2708.55.

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Gold (XAU/USD) one-hour update 01.23.2025

GOLD continued its rally as expected. Wave (v) reached the first target at 2769.99–2708.55, calculated using the inverse 1.236–1.618 Fibonacci extension of wave (iv). Another method to project the target for wave (v) is (v) = (i), which comes at 2804.4. We expect the cycle from the 2656.6 low to soon complete as a 5-wave structure ((i) )black and anticipate a pullback in ((ii)). However, we do not recommend selling against the primary bullish trend. Once the ((ii)) pullback begins, we expect it to reach around the 50–61.8 Fibonacci retracement area measured from the 2656.6 low.

Keep in mind market is dynamic and presented view could have changed in the mean time.