Short term Elliott Wave view in Gold (XAU/USD) suggests that cycle from 4/10 low (1246.92) is unfolded as an impulse Elliott wave structure where Minute wave ((i)) ended at 1257.2, Minute wave (ii) ended at 1250.8, Minute wave (iii) ended at 1279.75, Minute wave (iv) ended at 1271.69 and Minute wave (v) of (a) ended at yesterday’s peak 1295.6.
Below there, Gold has started the Minute wave (b) pullback to correct 4/10 (1246.9) cycle and that could be done already in 3 swings at earlier low 1281, where Sub minute wave a ended at 1285.6 and Sub minute wave b ended at 1292.6. However it needs to break the 1295.6 peak first for final confirmation of next leg higher started.
If it fails to rally from here then Double correction from the peak within the Minute wave (b) pullback can’t be ruled out yet before the rally resume, where we would like to be buyer’s again. As far as trading above the earlier low 1281 and more importantly the pivot from the 4/10 low remains intact. Gold has scope to resume the upside. We don’t like selling the metal into the pullbacks & favor the upside in Gold as far as the pivot from the 4/10 low remains intact.
Gold 1 Hour Elliott Wave Chart 04/18/2017
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