Gold remains stuck in an ongoing wave four correction on the monthly chart, according to Elliott Wave analysis, with volatility still well above the lows seen in 2024. The analysis says gold's typical setup for its next big move — a solid pullback paired with easing volatility — has not yet arrived.
Gold's monthly chart still shows wave four in progress, with the metal's volatility still far from the lower levels it touched back in 2024. That gap suggests the correction may need more time, and possibly more downside, before it plays out.
Past updates on gold have flagged a recurring pattern: some of the metal's best opportunities show up when gold makes a solid pullback while volatility moves toward the lower side of its range. The reasoning is that as volatility eases and price action slows, many traders and even major players tend to step aside and lose interest. That, the analysis argues, is exactly when traders looking for opportunities ahead of the crowd should start paying closer attention instead.
For now, that setup has not arrived. Once volatility settles near its lower range while gold trades at reduced levels and the dust starts to settle, conditions could open up for the next major wave five higher under Elliott Wave theory. Until then, the wave four correction remains a waiting game.
Source: Commodities Analysis & Opinion
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