Gold Wave Forecast—Is Gold Going to $3,750 Or Higher?
The comments below are an edited and abridged synopsis of an article by Technical Traders
Gold’s recent low has shaken some investors away from the longer-term opportunities, so the authors share their research and highlight some Elliot Wave structures.
Elliot Wave theory suggests that we are in the middle of a longer-term Wave 3 upside price trend that has recently completed an Intermediate Term Wave 4 downside correction. We are setting up for an Intermediate Term Wave 5 rally that may equal the previous Wave 3 rally. If this happens, gold will likely end the next rally phase near $2,700 when it will enter a new corrective price wave formation, completing the Intermediate-term Wave 1 leg.
Confirmation will come when a solid price bottom sets up above $1,725 in gold, and when price levels rally above $1,975, establishing a new high.
A weekly gold chart shows that a bottom must be set to confirm the Wave 4 correction structure and prompt a new Wave 5 advance to $2,700 or higher. Any future breakdown below $1,715.50 would potentially negate the Wave 4 structure and set up a potentially deeper price correction phase. As long as gold bottoms and begins to rally anywhere above $1,715.50, the Wave 4 corrective wave is validated, prompting the start of a new Wave 5 advance.
Watch the $1,715.50 level as gold makes potential bottom, and this broad Elliot Wave pattern continues to unfold. There should be a big upside price trend around December 7, 2020. The Fibonacci Price Amplitude Arcs (chart included) show where energy frequencies align. These alignment areas typically result in strong price impulse moves.
This is a long-term forecast for gold that will likely take place over weeks, months and years. Still, a rally in gold to above $2,500 suggests that certain pressures and uncertainties will unfold over the next 24+ months in the US and global markets.