Gold (XAUUSD) Has Scope for Further Downside
Gold (XAUUSD) Has Scope for Further Downside
August 18, 2023 By EWFHendra
Short Term Elliott Wave structure in Gold (XAUUSD) suggests the rally in Gold on 7.27.2023 high ended wave 2. The metal now extends lower in wave 3 a 5 waves impulse. Down from 7.27.2023 high, wave ((i)) ended at 1942.1 and wave ((ii)) rally ended at 1972.35. Down from wave ((ii)), wave (i) ended at 1929.2 and wave (ii) ended at 1946.55. The 1 hour chart below shows the starting point of wave (ii) of ((iii)). From there, the metal extended lower in wave (iii) towards 1913.51 and wave (iv) ended at 1930.15. Final leg wave (v) ended at 1895.90 which completed wave ((iii)). Rally in wave ((iv))) ended at 1911.59.
Expect the metal to end wave ((v)) of 3 soon with another leg lower, then it should rally in wave 4 to correct cycle from 7.27.2023 high before it resumes lower. Near term, as far as pivot at 1946.55 high stays intact, expect rally to fail in 3 or 7 swing for further downside. Potential target lower is 100% – 161.8% Fibonacci extension from 5.4.2023 high which comes at 1685 – 1800. From this area, buyers can appear for at least 3 waves rally.
Gold 60 Minutes Elliott Wave Chart
Gold (XAUUSD) Elliott Wave Chart
Gold Elliott Wave Video
Source:https://elliottwave-forecast.com/news/gold-xauusd-scope-downside/
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
The global economy is facing a number of headwinds, such as the ongoing war in Ukraine and rising inflation. This could weigh on the gold price.
The Relative Strength Index (RSI) is in the oversold territory, which suggests that the gold price may be due for a rebound.
The gold price is also trading near its all-time highs, which could make it vulnerable to a further decline.
The gold price is currently trading below its 200-day moving average, which is a bearish signal.