XAUUSD Technical Outlook Strengthens Following Elliott Wave Confirmation
In today’s market analysis, we examine the XAUUSD wave structure that provided members with a clear bullish signal, resulting in a significant upward movement exceeding 2000 points.
Market Structure: Gold’s Recovery From Major Correction
The precious metal reached its peak earlier this year at 5589.97 on January 29, 2026, subsequently entering a six-month corrective period that concluded at 3940.68 on June 30, 2026. Following that low, Gold initiated a recovery phase, completing wave (4) at 4309.78, then advanced to finish wave 1 of the new cycle, followed by a wave 2 flat correction against the 4309.78 high.
Forecast: Wave 2 Correction Reaches Completion
Our initial assessment indicated Gold forming a corrective structure identified as wave ((c)) of wave 2. Since corrective phases offer strategic opportunities to align with the primary trend, we maintained close monitoring of key support levels. Price action remained firm above our established invalidation threshold at 3997.04—and critically, above the wave (4) low at 4309.78—confirming the correction’s end and signaling the beginning of a new bullish phase. See chart below
Outcome: Impulsive Breakout Reaches 4630.22
Following the completion of wave ((c)) of wave 2, price action accelerated rapidly in an impulsive pattern. Gold surpassed the wave (3) peak, confirming the next upward leg and surging over 2,000 points toward the 4630.22 level. This strong bullish momentum prompted a revision of our invalidation level to 4309.78, aligning with the updated market structure. See chart below
Next Phase: Short-Term Pullback Before Extended Upswing
Based on our latest chart analysis, the near-term outlook suggests a minor wave ((iv)) pullback before a final wave ((v)) push higher. This sequence will complete wave 3 from the August 19, 2026 low, paving the way for a broader wave 4 correction that should maintain support above the wave 2 invalidation point. Upon completion of wave 4, price is expected to resume the primary uptrend to finalize the impulsive cycle originating from June 2026 lows before transitioning into a larger corrective phase.