Elliott Wave Analysis of Gold

On 9th May you saw the post “Last Hurrah for Gold..” where we looked for one final push higher from the current level of 1499. Then, on 2nd June and again 21st June, I had prepared the following two charts for the Global Head of Commodities Trading in a leading international bank. I would like to share those two charts with you now, so that you can see how one could have used Elliott Wave Analysis to identify low-risk trading levels. As you are aware, Gold fell to 1478 last week from a high of 1562. Enjoy


  • Zaher

    Hi SIr
    Thank you for the Charts , but my questioin is this final leg down going to 1155 $ as you mentioned before , or we will stop at 1414 $ ( the 200 Moving Avarage)

    Thank you

  • yunus

    First of all thank you for teaching us elliot wave principles and for good advice. As you mentioned before, when the gold finishes wave 5 a down move will start to the 1155 levels. But in this comment you say that one more attempt to upside from 1460 levels may take place. didnt wave 5 finish, or will that upside move be part of downmove .and should we expect new highs just like extended flat formation.thank you for your interest ramki.

    • Hi Yunus, remember I made those comments in early June, when the market was still very bullish. I am sharing those confidential notes with readers just so that they can appreciate what is possible with Elliott Wave analysis.

  • zen

    Hello, Ramki. Your gold analysis was spot on! I was wondering if your lower analysis chart could also be characterized as a “truncated 5th”? It has since rebounded slightly from under 1500 to 1510, then resumed downward. If this could be seen as an a-b-c correction, isn’t the wave 4 low (1,473.90) a valid target low?
    Also, I am using stockcharts but your reuters charts look much better. My search for reuters charts was unsuccessful and I wonder if you could provide a link to the exact daily gold chart that you are using in these examples. It would be very much appreciated.
    PS. Sorry, I was looking at stockcharts under $Gold, which shows 1473 as the previous low, so the 1460 low makes perfect sense.

    • Hi Zen, sure one could call the wedge or diagonal triangle a truncated fifth. However, my approach to trading is to use Elliott wave analysis as my guide. It is not a forecasting black box. Hence, I could change my mind at anytime. The idea is to call the direction right. Getting the count right is less important.

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