Saad Ullah
Gold (XAU/USD) continues to captivate market attention as it moves through a volatile corrective phase. A recent chart analysis by a well-followed trader outlines a textbook Elliott Wave formation, signaling that the current pullback may be a temporary pause before a powerful upward move. With technical indicators flashing key support levels, traders are watching closely for signs of a bullish reversal.
Gold (XAU) Correction Unfolding Within Elliott Wave Structure
Gold (XAU/USD) appears to be in the final stages of an ABC flat correction. The chart highlights a well-defined Elliott Wave count, with the market completing wave 3 near $2,450 before initiating a pullback toward wave 4.
The trader accurately predicted the recent dip using regular bearish divergence on the RSI indicator, which signaled a temporary top and the beginning of a C wave down. Key Fibonacci retracement levels now act as support, with potential bounce zones around $3,225 (0.382), $3,172 (0.618), and $3,076 (1.0 extension). The 1.382 level near $2,932 could serve as a final line of defense for bulls if the correction deepens.
Bullish Wave 5 May Target New Highs
Despite the near-term weakness, the larger wave structure remains bullish. As per the analysis, once the ongoing wave 4 correction completes, a strong rally into wave 5 could propel Gold toward new all-time highs. The projection points toward a final move exceeding $3,850, which would mark a significant breakout from the current consolidation.
This outlook aligns with macroeconomic uncertainties and continued investor demand for safe-haven assets. Traders are closely watching price action around the key Fibonacci levels and RSI behavior for confirmation of the upcoming reversal.
Conclusion
While Gold (XAU/USD) is currently navigating a corrective phase, the technical setup suggests the bull market may still be intact. Traders who monitor wave structure and divergence signals are anticipating a breakout soon. If support holds, the metal could soon shine again — with wave 5 potentially lifting it to record highs.
Saad Ullah
