Commodites

Gold: Short-term Support At 2300Apr 17, 2024

Gold has seen a bullish trend over the past few months, and we are currently witnessing strong and accelerating price action, driving the metal to new all-time highs. The drivers behind this surge are geopolitical tensions and its role as an inflation hedge. Interestingly, this ascent is occurring despite a strong US Dollar Index, which usually moves inversely to gold.

Moreover, gold is rallying amid rising US yields. However, the most intriguing aspect is the potential impact of speculated rate cuts by the Fed later this year. A dovish cycle for interest rates could further propel the current upward trajectory we’re experiencing with gold. Reflecting on historical patterns, gold began its ascent in 2008 as Fed rates decreased, with a similar trend observed from 2019 to 2020 following the Fed’s dovish pivot after hikes between 2016 to 2018.

Now, there’s a possibility that the Fed will maintain current rates for a few more months, but should we see a rate decrease, gold could soar even higher, potentially into the fifth wave, as visible on the monthly chart. Keeping this broader perspective in mind is crucial for any potential trades on smaller timeframes.

Narrowing down to the 4-hour timeframe, we’re seeing an impulsive recovery with significant moves from $2,146 to recent highs, which could be part of a larger impulsive degree. After the next dip, we anticipate further gains. The current consolidation, which is wave four, shows substantial support around $2,300, where we believe gold could find stability if it reaches that level. The short-term invalidation level for this intraday bull run is at $2,194—should gold drop below this, we may be headed for a more profound correction rather than just an intraday one.

Grega

Crypto: ALTcoin Season Is Ready To Resume

Become a premium member

Get daily Elliott Wave updates for some major Digital currencies, FIAT currency markets, major stock indexes, gold, silver, crude etc. or apply for unlimited access to the Elliot Wave educational videos.

Register here (Limited-Special 2 for 1 Offer available)

DISCLAIMER

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.

Close