Gold price has made a decline from $1,278 to $1,252 in 5 waves. This impulsive downward move was followed by three corrective upward waves and a new lower low. Currently, Gold price is trading sideways creating a triangle. Our Elliott wave count is shown in the chart below. Our preferred wave scenario expects Gold price to move lower towards $1,240. Bears want Gold price to break the triangle downwards and the upward sloping purple trend line that places support for the precious metal at $1,245.
Short-term support is found at $1,245. Short-term resistance is found at $1,273. Gold price has moved again below the red downward sloping long-term resistance trend line as shown in the daily chart below. This favors short positions.
Although we believe the rise from $1,180 is corrective, Gold price should also break the important support at $1,230 in order for our preferred scenario to be confirmed. Gold bulls will need to see Gold price move again above $1,270 in order to hope to see $1,300. Today we expect Gold price to become more volatile after the Fed decision on interest rates.
