Short Term Elliott Wave view in Gold (XAUUSD) suggests the metal continues the correction lower. The internal of the decline from November 9 peak is unfolding as a zigzag Elliott Wave structure. Down from November 9 peak, wave ((a)) ended at 1850. Up from there, bounce in wave ((b)) unfolded as a zigzag in lesser degree. Wave (a) ended at 1890.41, wave (b) ended at 1855.30, and wave (c) of ((b)) ended at 1898.92.
The metal has resumed lower in wave ((c)). Internal of wave ((c)) is unfolding as a 5 waves impulsive structure. Down from wave ((b)) high at 1898.92, wave (i) ended at 1863.75 and bounce in wave (ii) ended at 1896.01. Down from there, wave i of (iii) ended at 1851.8, wave ii of (iii) ended at 1879.89, and wave iii of (iii) ended at 1820.40. Expect bounce to fail in 3, 7, or 11 swing against 1898.92 pivot for a few more lows before the metal completes wave ((c)). Potential short term target to the downside is 100% – 123.6% Fibonacci extension of wave ((a))-((b)) which comes at 1757.2 – 1784.3. From this area, expect the metal to resume higher or bounce in 3 waves at least.
XAU/USD 60 Minutes Elliott Wave Chart
