Elliott Wave Analysis of Gold - Closing in on resistance at 3,100

Elliott Wave Analysis of Gold - Closing in on resistance at 3,100

Almost a year ago, when gold was trading near 2,175 I said that a monthly close above resistance at 2,172 would call for a continuation towards the next upside target at 3,100 (You can see that post by clicking here).

Well almost a year after Gold is closing in on the 3,100 target fast. I would expect the 3,100 target to act as a strong resistance, that's not going to be broken and set-up gold for a larger corrective decline towards strong support at 2,172 and ultimately a continuation lower to the bottom of wave (4) near 1,050. 

However, for now we should look for a firm test of the long-term target at 3,100 and then see what gold has in store for us. 

In my March 2024 post I call for silver to break firmly above resistance at 30.00, which we have seen, but silver still needs to accelerate higher towards the long-term resistance at 50.00. I still expect this to happen, but obviously at its own pace...  

 

Elliott Wave Analysis of Gold - Next upside target seen at 3,100

Elliott Wave Analysis of Gold - Next upside target seen at 3,100

If gold closes the month of March above 1,972 then gold should be headed for 3,100 as the next upside target. 

That said we do see a real possibility of a run-away market as wave V finally gathers upside momentum and run-away markets in the fifth wave in the commodity complex is more the rule that not. 

So keep an eye on gold in the month ahead as it could be the focus of attention. 

Silver is currently lagging the rally in gold, which is uncommon, and I expect silver to gather momentum alongside gold and eclipse important resistance at 30,00 for a continuation towards the former all-time high at 50,00.