Key Takeaways:
- Gold rejected at $4,204, completing wave ((B)) of the Elliott Wave sequence
- Wave ((C)) is unfolding as a five-wave bearish structure targeting lower levels
- The $4,204.6 pivot must hold for the bearish outlook to remain valid
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Gold rejects at $4,204 as Elliott wave signals further downside
Gold reversed lower after reaching $4,204 an ounce on July 22, completing wave ((B)) of its Elliott Wave sequence, with the metal now unfolding a five-wave bearish structure that targets deeper losses.
"The rally to $4,204 marked the completion of wave ((B)), after which the metal turned lower in wave ((C))," Elliott Wave Forecast analysts said in a note. "The internal subdivision of wave ((C)) is unfolding as a five-wave structure."
Within the decline, wave (1) ended at $3,983.2. The subsequent corrective rally in wave (2) developed as an expanded flat formation, with wave A reaching $4,103.7, wave B pulling back to $3,959.3, and wave C extending to $4,166.07. From that peak, wave (3) began its descent, with wave ((i)) ending at $4,099.03 and wave ((ii)) concluding at $4,141.05.
The pivot at $4,204.6 remains the key threshold. As long as that level holds, any rally is expected to fail within three to seven swings, reinforcing the bearish bias. The structure points to two additional lows to complete wave ((v)) of 1 before a corrective wave 2 rally emerges, after which the next bearish leg would resume. COMEX gold futures data and LBMA fixings will provide the next price confirmation signals for traders monitoring the wave count.
This article is for informational purposes only and does not constitute investment advice.
