Gold (XAUUSD) initiated a distinct impulsive rally after concluding a correction at its March 23 low of $4098.74. From this point, wave (1) advanced to $4890.97. A subsequent pullback in wave (2) then finished at $4500.46, a movement reflected on the one-hour chart. Following this retracement, the metal resumed its upward trajectory in wave (3). However, confirming this view requires a decisive break above the prior wave (1) peak of $4890.97. After the wave (2) low, wave 1 advanced, ending at $4764.73.
Currently, wave 2 is unfolding as a corrective phase, addressing the cycle that began on May 5, 2026. Within the Elliott Wave framework, the internal structure of this wave is developing as an expanded flat formation. After declining from wave 1, wave ((a)) terminated at $4647.71, and wave ((b)) completed at $4773.58. The ongoing wave ((c)) of 2 is progressing lower in an impulsive manner, with potential to retest the $4500.46 level before a renewed advance occurs. This decline is considered part of a corrective sequence, not a reversal of the broader trend.
In the near term, the $4500.46 low remains a key pivot. As long as this level holds, the expectation favors a resumption of the upward cycle once the current correction completes. The broader structure suggests that Gold is consolidating within a corrective pattern, yet its underlying impulsive bias remains intact. Traders should closely monitor the completion of wave ((c)), as it is likely to set the stage for the next bullish phase.
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