close icon

Ahead of Gold’s Trade War-Inspired Rally

United States President Donald Trump announced import tariffs on approximately $60 billion worth of Chinese goods. China responded modestly by imposing tariffs on just $3 billion worth of U.S. products, but that was more than enough to spark fears about a global trade war. Investors apparently did not like how the geopolitical landscape is shaping and hurried to switch their stocks for gold. The Dow Jones Industrial Average lost 724 points on March 22nd, while bullion gained 2.44% in three days, climbing from $1311 to $1343. Fortunately, while the price of gold was hovering around $1317 on Wednesday, March 21st, we sent the mid-week updates to clients. The chart below was included.

gold elliott wave analysis

The 30-minute chart of gold was a real mess, but a five-wave impulse from $1302 to $1325 that took place between March 1st and 2nd gave us hope that the bullish case was still alive. It also meant that gold’s entire price development since March 2nd, including the new high at $1340, was supposed to be some kind of a correction. It was neither a flat correction, nor a zig-zag, so we thought it must be a combination of both.

To be more precise, it appeared that a corrective combination between an expanding flat correction in wave W and a simple zig-zag in wave Y has been in progress between the $1325 high and the bottom at $1307. Therefore, as long as XAUUSD was trading above $1307, higher levels should be expected.

march 23 gold elliott wave update

Today is March 23rd and as of this writing, gold stands at $1342. $1307 was never tested and despite the fact that we have been waiting for this rally for quite a while, it is great that it eventually happened. Some insist to explain gold’s surge with the looming US-China trade war, while waiting for President Trump’s next step. We, on the other hand, prefer to rely on the Elliott Wave Principle instead.

Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Silver Price Going for $19 Before Retracing to $16

The price of silver, otherwise known as a safe-haven asset along with gold, crashed sharply as the coronavirus panic swept equity markets. XAGUSD fell to $11.64 on March 18th just as investors needed a refuge the most. But the precious metal has appreciated significantly since the depths of the selloff. As of this writing, silver…

Read More »

Gold is Crashing. Elliott Wave Somehow Predicted It

Common sense dictates that in a time of crisis demand for safe-haven assets jumps. The price of gold, for instance, the most sought-after asset in difficult periods, climbed to an all-time high of $1921 shortly after the 2008-9 market crash. This time though, as the world economy is on the verge of grinding to a…

Read More »

Gold Fails as a Safe Haven Amid Coronavirus Panic

The S&P 500 was down 14.4% for the week at one point Friday on fears the coronavirus outbreak is going to become a worldwide pandemic. It is common knowledge that investors turn to gold when stocks and other risky assets decline. Last week, however, that wasn’t the case. While stock markets around the globe were…

Read More »

Silver Bears Discouraged by Fibonacci Encounter

We last wrote about silver in March 2019, when the precious metal was hovering slightly above $15. Our analysis of its 4-hour chart gave us plenty of reasons for optimism. And indeed, six months later in September the price reached $19.65. Currently, silver is trading near $17.75, up from $16.53, but still down from that…

Read More »

Gold ‘s Surge and US-Iran Have Little In Common

Gold climbed to a six-year high on rising tensions between the US and Iran following the assassination of Iranian General Qasem Soleimani. The safe-haven asset reached $1590 earlier today as #WorldWarThree started to emerge on Twitter. We hope WWIII remains just a hashtag. In the meantime, we are once again baffled by how the media…

Read More »

Gold Traders Better Off Ignoring the News

In our previous article about the precious metal readers saw how the Elliott Wave principle put us ahead of gold ‘s $72-decline from $1531 to $1459. In short, the hourly chart made us think a three-wave decline from $1555 was still in progress. Hence, the bears remained in charge and more weakness could be expected.…

Read More »

Explaining Gold ‘s Weakness With Elliott Wave Logic

Gold bulls suffered in four of the last five daily trading sessions. A week ago, on September 24th, the price of gold briefly exceeded $1535. Earlier today, it touched $1459 before recovering to $1466 as of this writing. In the meantime, global economic growth is slowing and several recession indicators are flashing red; In what…

Read More »

More analyses