Gold made a strong extension higher over the last couple of years, which we interpret as wave III of an ongoing five-wave bullish impulse. This impulsive structure reflects strong trend participation and sustained institutional demand during the advance. Despite the slowdown into 2026 and a break below the 4000 level, the weekly timeframe still suggests that price action is correcting within a broader wave IV rather than transitioning into a completed bearish cycle.Current price behavior remains consistent with a complex corrective phase, where volatility increases and directional clarity temporarily fades after a strong impulsive leg. From a higher-degree perspective, gold remains in a wave four correction that may gradually complete later this year. Key long-term support is still seen in the 3900–3200 zone, where a more meaningful reaction or potential structural low could develop once the correction matures.
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