Gold Price Analysis: Elliott Wave projections indicate a target near $1700 at least is on the cards

  • Gold trades 2.16% higher despite the risk-on tone in equities on Monday.
  • The previous wave high of USD 1644.54 has now been broken indicating a move higher.

Fundamental backdrop

The easter weeks has started with a risk-on feel. Equities indices in Asia closed higher and at the moment European and US bourses are positive. There has been a slowdown in the death rate in Spain and Italy but the US and New York, in particular, are still now out the woods yet. New York state officials stated, "recent data suggests we are at the apex or near the apex at the moment" pretty bullish words at an early stage from the NY state official.  

The big issue in the US economy could be housing. In the US jobless claims are on the rise and employment looks like it will be hit hard. This means that we are far from the peak of the economic impact of this pandemic even if the health officials are calling a top. 

This is one of the main reasons the market may be bullish on gold. It is very hard to estimate the impact of store closures and reductions in productivity in such a short space of time. 

Technical picture

The chart below follows on from last weeks (Click Here). The previous wave of USD 1644.54 has now been taken out to the upside. This area could be a support zone if the price pulls back, which often happens. Away from this, the Fibonacci projections are showing some decent upside targets for the patient bulls. The 138.2% is holding at USD 1676.45 and the 161.8% is closer to the USD 1700 level at USD 1695.00. If this scenario does transpire that would complete a 5 wave pattern on the 4-hour timeframe and there could be a 3 wave pullback before a potential assault on USD 2000. This, of course, all depends on the deterioration of the US economy following the COVID-19 pandemic.  

Gold Elliott Wave

Additional levels


Today last price 1650.27
Today Daily Change 32.05
Today Daily Change % 1.98
Today daily open 1618.22
Daily SMA20 1582.5
Daily SMA50 1592.91
Daily SMA100 1548.81
Daily SMA200 1514.05
Previous Daily High 1626.17
Previous Daily Low 1606.62
Previous Weekly High 1636.13
Previous Weekly Low 1568.46
Previous Monthly High 1703.27
Previous Monthly Low 1451.3
Daily Fibonacci 38.2% 1618.7
Daily Fibonacci 61.8% 1614.09
Daily Pivot Point S1 1607.84
Daily Pivot Point S2 1597.45
Daily Pivot Point S3 1588.29
Daily Pivot Point R1 1627.39
Daily Pivot Point R2 1636.55
Daily Pivot Point R3 1646.94



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD: Bears hold the grip, critical challenge at 1.2000

The greenback firmed up at the end of the week, closing it with substantial gains against most major rivals. Renewed coronavirus concerns and poor macroeconomic data spurred risk-off. EUR/USD is firmly bearish.


GBP/USD: Further restrictions in the UK may hit the pound

The GBP/USD pair trimmed most of its weekly gains on Friday and settled in the 1.3580 price zone, amid risk-off fueling dollar’s demand. UK GDP contracted by less than anticipated in November, Industrial Production plunged.


Gold: Further decline toward $1,800 remains on the cards

Gold failed to stage a convincing rebound this week. After losing more than 2% in the previous week, the XAU/USD pair extended its slide on Monday and touched its lowest level since early December at $1,817. 

Gold news

Darkest fefore dawn

The upcoming economic news is likely to be dreadful, and if it is not dreadful, it will be mostly ignored. This includes the release of the preliminary January PMI figures at the end of the week. Japan is extending its national emergency to another five prefectures, which collectively account for over half of the nation's GDP.

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex Majors