Gold Price Analysis - Elliott Wave and Gann analysis - No signs of slowing down after a break of USD 1700

• Since breaking USD 1700 gold has not looked back on Tuesday the precious metal trades 1.47% higher.
• The Elliott Wave count has now extended and now the move higher has moved into subdivided waves.

Fundamental backdrop

Today once again stock markets in the US are higher as traders seem to believe there is some light at the end of the tunnel when it comes to the coronavirus pandemic. Larry Kudlow (Director of the US economic council) seems to think the economy is ready to go back to work. He also stated that Trump will deliver some very important news over the next coming days on this very subject. It seems like a very strange thing to say but interesting timing as the markets prepare for earnings season. That was not the end of the bullish comments from America's elite as US central banker Bullard said the US could perform a "V" shaped recovery if firms and families can pay bills, the virus is controlled and more tests are made available. Pretty big ask as 16 million US workers lost their jobs recently.

Call me a cynic but this could be the very reason gold is hitting the sky. The credibility of the US government and the central bank is being tested day after day. From the reactions to journalist questions to the stories of company bailouts, it feels like there is some pain left to come.

Technical picture

Below is the 4-hour chart of gold. As you can see the price has been pushing hard in recent sessions and it will be very difficult to keep this kind of momentum going in the long term. The Elliott Wave structure has now changed. The price is now in its wave 3 phase but the wave is long (usually the case) and now becoming subdivided. This means there are waves within waves. Elliott Wave analysts could, therefore, be looking for an internal 5-3-5 wave pattern to the upside for higher levels to be tested. There will be a weekly chart posted below so you could have an idea of where the longer-term targets lie. 

Weekly Gann fan analysis

Below is the weekly chart with some manually drawn Gann fans. Following the principles, some of the main Gann lines have now been broken. I must stress there has not been a weekly close of the current weekly bar so watch out for a rejection. But the fan lines from the peak have now been taken out. This could mean a run for the highs could be more likely (if you believe in this type of analysis). The Gann lines that originate from the bottom of the chart are still intact. When the price breaks through the lines they are often used as support as you can see from the test of USD 1450.00. It remains to be seen if this velocity can continue but the signs for a move higher are still there.

Additional levels