Gold Commodity Elliott Wave Analysis

Gold continues to navigate a bearish correction that began in late October after reaching a new record high. Following a peak at 2530 in November 2024, the commodity sharply bounced before moving sideways. From an Elliott Wave standpoint, the bearish correction cycle appears likely to extend further downward, especially if the price breaches the December low of 2582.

Gold Commodity Daily Chart Analysis

On the daily timeframe, the overall trend remains bullish as wave III extends from the October 2023 low of 1810. Since wave III is incomplete, buyers may consider entering long positions on dips. The ongoing decline from late October 2024 is expected to represent wave ((4)) of III. This wave indicates potential for one more rally in the larger bullish cycle that started in September 2022 at $1616 before a broader correction ensues.

Given that wave ((4)) is a corrective phase, it is likely to remain relatively shallow. Structurally, wave ((4)) appears to be forming a double zigzag pattern. Alternatively, the correction may evolve into a triangle if prices consolidate within the range of 1725 to 2538 over the next several weeks.

Gold Commodity H4 Chart Analysis

On the H4 chart, the corrective wave ((4)) seems to be unfolding as a double zigzag pattern. If this scenario materializes, the price could extend lower in wave C of (Y), potentially breaking below the key levels of 2580 and 2538. The anticipated downside targets lie between 2477 and 2334, where wave ((4)) may conclude and fresh buying interest could emerge. This setup would pave the way for wave ((5)), likely driving prices toward a new all-time high.

Technical Analyst: Sanmi Adeagbo

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