XAUUSD, better known as gold, has been trading in a strange way on Friday, going down at first from 1315 to 1292 and then bouncing back up to 1310. Fortunately, there is one Elliott Wave Pattern, which can explain gold’s behavior in this situation. It is the “expanding triangle”. On the 30-minute chart of the price of gold you can see it in the position of wave X of a double zig-zag.
Triangles – contracting or expanding – precede the final movement of the larger sequence. Here, the larger sequence is the W-X-Y double zig-zag and the final movement is wave Y. This means that the whole price action of XAUUSD from 1323 down to 1292 is a correction, so it is expected to be fully retraced. If this is the correct count, gold prices could continue rising in the beginning of the next week.