close icon

Gold Traders Better Off Ignoring the News

What will Gold bring next week? That is the subject of discussion in our next premium analysis due out late Sunday!

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.

What we didn’t mention was that our subscribers actually received a little more information with their September 25th updates. Namely, that once the support near $1460 was reached, a bullish reversal should be anticipated. The full chart this conclusion was based on was sent to clients more than two weeks ago. Take a look at it below.

Elliott Wave analysis helped traders prepare for gold's bullish reversal

Our October 1st article already explained the Elliott Wave logic behind the bearish idea. We thought a w)-x)-y) corrective combination was going to form once wave y) completed the pattern near $1460. On the other hand, once a correction is over the larger trend resumes.

Gold Absorbs the News and Follows the Pattern

Gold ‘s daily and 4-hour charts, also included in our premium analyses, revealed that the yellow metal was in an uptrend prior to entering the above-shown correction. So, it made sense for this uptrend to resume as soon as wave y) ended. According to this count, a bullish reversal near $1460 had to be expected.

Sharp but predictable Bullish Reversal in Gold prices

Wave y) ended at $1459 on October 1st. On October 3rd, gold exceeded $1519 for a 4.1% surge in just two trading days. The U-turn the support near $1460 caused was very sharp and fast. Fortunately, with the help of proper Elliott Wave analysis it was also quite predictable.

Furthermore, traders didn’t need to pay any attention to all the Brexit-, trade war– and Middle East-related news the media keeps bombarding us with every single minute. A chart and an eye for Elliott Wave patterns proved to be enough to stay ahead of gold ‘s recovery.

What will Gold bring next week? That is the subject of discussion in our next premium analysis due out late Sunday!



Stay informed with our newsletter

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

Privacy policy
You may also like:

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 »

Famous Pattern Put Gold Traders Ahead of the Curve

Last week, gold finally broke out of the consolidation it has been locked in for almost a month. The price fell to $1400 before rising to $1453 on Friday, July 19th. But instead of maintaining the positive momentum, the bulls lost steam and allowed the bears to close the weekly session at $1425.66. Fortunately, a…

Read More »

Silver Looking for Support near $15 Mark

A little over a month ago, the price of silver was hovering around $16 following a strong rally from as low as $13.90 in November 2018. Many traders saw this 15% surge as a sign of even better things to come. Unfortunately for them, yesterday an ounce of silver was switching hands for about $15.…

Read More »

In Gold ‘s Elliott Wave Footsteps from 1200 to 1350

Gold bulls can be very pleased with their progress in 2019 so far. Three days ago, the precious metal climbed past $1346, bringing its total year-to-date return to 5.2%. Furthermore, gold is up 12.6% from its mid-November low at $1196. “Uncertainty” is once again the usual reason people use to explain gold’s surge. Trade war…

Read More »

Silver Entering Bearish Reversal Area

The price of silver fell to as low as $13.90 on November 14th. It has been recovering ever since and is trading above $15.90 as of this writing. This means silver has gained over 14% in just two and a half months, making it one of the best investments in 2019 so far. The bad…

Read More »

Gold Price Followed Its Elliott Wave Path to $1300

Gold’s third consecutive week of gains led the price of the yellow metal to the vicinity of the psychological $1300 mark earlier today. On December 14th, the price of gold fell below $1233, but according to experts, a combination of economic uncertainty, trade worries and rising interest rates sparked fear in investors, who hurried to…

Read More »

Gold Tests $1240 Resistance after Elliott Wave Setup

Gold is trading at levels last seen over a month ago, following mixed signals from U.S. and China on trade, Brexit worries and protests in France. The demand for safe haven assets is thought to be increasing at times of political and economic uncertainty, which helps explain the surge in the price of gold. On…

Read More »

More analyses