Gold (COMEX:GCG14) is trading nicely lower since the start of September after breaking through the rising trendline of a corrective channel. We knew at the time that it was an important signal for a change in trend, which means bearish price action is now back in play. That has been accelerating for the last couple of weeks from $1,362, so we think the market is moving down in wave 3 that could reach the $1,130 region in the next couple of weeks. The short-term critical region is now at $1,268; as long as this level holds, we are looking straight down.
GOLD Elliott Wave Analysis 4h
Gold has turned sharply to the downside in the past week, which had been expected after only three waves up, labeled as a)-b)-c) on the chart. The current decline from $1,251 has been very sharp and directional, and has already reached a new low, so we believe it represents red wave iii) in progress, targeting 161.8% Fibonacci extension level at $1,175.
GOLD Elliott Wave Analysis Intraday
GOLD found some support on Thursday, but the rally from that low is slow, so we believe it’s a corrective wave iv that will sooner or later send price back to the lows — ideally to $1,180 level from June. Invalidation level for gold is at $1,226.