Gold Is StabilizingAug 4, 2022

Hello traders, today we will talk about gold, which we see it stabilizing with pretty strong recovery away from the lows that can be signal for a bullish reversal.

Gold was trading lower in a higher degree corrective phase for the last year, but after reaching important yearly 1680 support area in July, seems like downward correction can be completed.

Gold 4-Hour Chart
XAUUSD 4-Hour Chart

The main reason why support on gold can be in place, is a five-wave recovery away from the lows. This actually suggests that the bottom is in and bulls back in the game. There can be actually room even up to 1800 area, but keep in mind that after every five waves, a three-wave pullback occurs. So, we believe that gold is stabilizing and can see more gains in weeks/months ahead, but ideally after a corrective slow down that can retest 1750 – 1700 support zone.

GDX Daily Chart
GDX Daily Chart

Another evidence that bulls on gold may wake up soon is also Gold miners (GDX) chart. We can actually clearly see it finishing higher degree daily A-B-C flat formation. With equal wavelength A=C and filled GAP from 2020, we should be really aware of a bullish reversal. Just please have in mind that bulls can be activated only above 33.50 region.

Happy trading!

Check also our latest video analysis HERE


Any reviews, news, analysis, prices or other information contained on our website is provided as general market commentary and delivered electronically through a distribution channel to larger number of clients, therefore does not constitute investment advice or investment research. We are not trading advisors. Most of our work is for educational purposes only, with information based on Elliott Wave theory in real time. Trading forex, futures, options, stocks, cryptocurrenices or any another trading market carries a high level of risk, and may not be suitable for all investors.

The possibility exists that you could lose some or all of your initial investment; therefore you should not invest money that you cannot afford to lose. Our website and the information that we provide should not be relied upon as a substitute for extensive independent research before making your investment decisions. In no event will we be liable for any loss or damage on your account in connection with, the use of our products. For any real cash investments you have to contact your financial advisor.

Any information or material contained on our website is owned by Val Global d.o.o.. Reproduction is prohibited without Val Global d.o.o. prior license in writing.

By continuing to use the site, you agree to the use of cookies. Learn more.

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.