Gold Elliott wave analysis update

London (Nov 7)  The yellow metal broke down on Tuesday. It hit below the 1481 support but still holds above 1474. The metal has been in a wide range since the October 1-3 surge. Last week, it surged to 1516 from 1481 as a result of doubts concerning the US-China trade deal. However, the two parties remain strong in their convictions that the first phase of the deal will go through. The market fell sharply to 1479 as a result. There was a minor recovery to 1494 on Wednesday. Meanwhile, in the latest reports from China, the country’s commerce ministry has expressed optimism. Gold price, as a result, fell sharply and currently trades at $1,485 per ounce.

Gold is looking more difficult for swing trend traders as the price has remained in a range for over 4 weeks. However, short-term speculators who trade reversals will find this good. The bearish correction from 1520 is becoming overstretched. 1517-1520 remains the resistance level to beat before the bullish trend will resume. On the other hand, 1474 and 1458 are the next target levels before the 1400 handle.

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