The Gold price backtracked on Tuesday after a volatile session driven by coronavirus worries and its impact on the global economy, which encouraged Gold's visit of the 2013's highs, at $1,683.38 per ounce.
From the Elliott wave perspective, Gold, in its 2-day chart, displays the advances of the precious metal in a wave (3) of Intermediate degree labeled in blue. This sequence began in August 2018 when the price found buyers at $1,160.32 per ounce.
At the same time, the internal sequence of this bullish impulsive move in progress reveals that Gold advances in its fifth wave of Minor degree tagged in green, which started in the past October 2019 when price found support at $1,445.78 per ounce.
The next figure illustrates the yellow metal in its 12-hour timeframe. On that chart, we observe that price moves in its fifth wave of Minute degree labeled in black.
In the chart, we observe that the bias remains bullish. At the same time, the price action continues advancing above the invalidation level, settled at $1,547.57, which corresponds to the end of the fourth wave of Minor degree in black.
Gold, in its 4-hour chart, shows the price action starting the fourth wave of Minuette degree labeled in blue.
On the other hand, we observe that the third wave on the Minuette degree is an extended wave.
According to the Elliott wave theory, in an impulsive movement, there is only one extended wave; this rule makes us suspect that a new advance in a fifth wave shouldn't be extended. Therefore, the price could find resistance at the psychological level of $1,700 per ounce.
In conclusion, our preferred bias remains in the long side as long as Gold continues moving above $1,547.47 per ounce.
On the other hand, the possible next path that can develop the yellow metal is the completion of the fourth wave of Minuette degree in blue, which could provide a long-entry to profit from Gold's advancement to a new yearly high.
Elliott Wave Summary
Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.
Recommended Content
Editors’ Picks
GBP/USD clings to recovery gains above 1.3200, as BoE looms
GBP/USD sustains the recovery above 1.3200 in early Europe on Thursday, having found buyers near 1.3150. A fresh US Dollar pullback and a rebound in risk sentiment offer support to the pair ahead of the BoE policy announcements.
EUR/USD holds higher ground above 1.1100, focus shifts to ECB-speak
EUR/USD is holding higher ground above 1.1100 in the early European session on Thursday. The pair is underpinned by the renewed US Dollar retreat, as traders digest the Fed's dovish outlook, bracing for ECB-speak for fresh trading incentives. US data are also eyed.
Gold price jumps back closer to all-time peak, $2,600 remains in sight amid fresh USD weakness
Gold price regains positive traction following the previous day's pullback from the all-time peak and builds on its steady intraday ascent heading into the European session on Thursday.
BoE expected to keep interest rate unchanged at 5% as price pressures persist
After a close call in August, the Bank of England’s September interest rate decision is keenly awaited for fresh cues on the bank’s future policy action and the pace of its bond sales.
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut
Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.