Elliott Wave View: Gold Likely Still Has More Upside

Short Term Elliott Wave structure in Gold suggests the rally to $1528 on August 16 ended wave 1. The precious metal then pullback to $1492 which ended wave 2. The internal subdivision of wave 2 unfolded as a double three Elliott Wave structure. Down from 1492, wave ((w)) ended at $1492.9 as a zigzag. The bounce to $1508.76 ended wave ((x)) and the next leg lower to $1492.16 ended wave ((y)) of 2 with subdivision also as another zigzag.

The metal has since resumed higher in wave 3. The internal of wave 3 is unfolding as an impulse Elliott Wave structure. Up from 1492.16, wave ((i)) ended at $1555.33 and wave ((ii)) ended at $1520 Near term, while above $1520, and more importantly above $1492.16, expect Gold to extend higher. The precious metal still needs to break above wave ((i)) at $1555.33 to confirm that the next leg higher has already started. We don’t like selling Gold and expect the precious metal to continue supported as far as pivot at $1492.16 low stays intact.