Gold Prices Dip, But Pattern Incomplete To Upside
Gold prices continue to consolidate inside a range. The Elliott Wave model we are following hints that we could see an eventual breakout above $1295, though it does call for some shorter term weakness.
According to the model, gold prices are grinding sideways in a ‘B’ wave. This wave could continue to drop towards $1228 and possibly dive towards the March low of $1194.
If gold prices do approach $1194, we think it may find support in the $1180 - $1194 zone. The model we are following does suggest a lower probability outcome for gold prices to break below $1122 and that prices are likely to hold above $1122.
The IG Client sentiment reading for gold is at +3.75. Traders have remained near current positioning levels for the past several weeks. In a way, this makes sense because gold prices have been trading sideways with no real breakout taking place. However, we can use sentiment as a contrarian indicator that suggests there may be weakness in the yellow metal in the shorter term. Follow this live reading and learn how to trade with sentiment at this link.
Bottom line, we are anticipating some losses in gold price and for support to form above $1122. Once support is formed, we anticipate new highs above $1295.
This is a shorter term outlook for gold. Read our quarterly gold price forecast to see what may be influencing the longer term cycles.
---Written by Jeremy Wagner, CEWA-M
Discuss this market with Jeremy in Monday’s US Opening Bell webinar.
Follow on twitter @JWagnerFXTrader .
Join Jeremy’s distribution list.
EUR/USD has stalled. Where might we be in the Elliott Wave cycle? Read more on my EURUSD analyst pick.
Read the recent Dow Jones Elliott Wave article.
USD/JPY advances in impulses and corrects in three’s…see what that hints at for price action.
AUDUSD aims for 77 cents...see key levels to watch.
Trumps Ties To Oil Industry Under Investigation By Democrats In Policies-for-Money Scandal
Democrats have launched a thorough investigation into former President Donald Trump, probing allegations of a ‘policie... Read more
De Beers Ownership Shift And The Future Of The Diamond Industry
The diamond industry is on the brink of a significant transformation as Anglo American, a major British mining firm, ann... Read more
Shareholders Approve Shell's Revised Climate Strategy, Reject Activist Push
London, UK – Shell shareholders have approved the company's move to relax its climate targets, rejecting a resolution ... Read more
Shanghai Gold Exchange Sees Trading Boom, Fuels Global Gold Prices
Beijing, China — The Shanghai Gold Exchange (SGE) witnessed a remarkable surge in trading volumes in April, with the a... Read more
Nickel Market Volatility Rises As New Caledonia Protests Escalate
Protests in New Caledonia have escalated, causing significant disruptions to nickel mining operations and leading to a n... Read more
Copper Prices May Plateau As Machine-Driven Rally Faces Reality Check
Copper prices have seen a significant surge in recent months, largely driven by machine-led trading strategies. However,... Read more