More than a month ago, on May 9th, we published our mid-term forecast of gold. When the yellow metal was trading between 1290 and 1300, we were expecting a decline to the 1250 area, followed by a strong bullish reversal back to the 1300s. The chart below will remind you of how gold looked like, when the article was published.
We presumed another drop-off, because the price action since the top at 1392 appeared to be a double zig-zag corrective pattern with its wave C of (y) still to come. If you have been following this market, you probably know how gold developed ever since. However, the next chart depicts it.
Our inaccuracies were limited to two. First, wave B of (y) extended into a triangle, which did not change the general idea in any way. And second, wave C formed a bottom at 1240, instead of 1250. Nevertheless, as soon as 1240 was touched, gold began an uptrend, which has led its price to 1317 so far. This situation can serve as an example of how you can predict not only one, but two consecutive movements using Elliott Wave Patterns.
