Gold might have completed its corrective Wave (b) around $1721 on Thursday. The yellow metal has raised sharply through $1765 mark before pulling back. It is seen to be consolidating its gains for now as bulls prepare for yet another push through $1775-80 zone.
Gold prices had dropped from $1916 through $1677 mark, subdividing into five waves, carving an impulse. As a general guideline of the Elliott Wave Principle, an impulse is followed by a corrective wave in the opposite direction.
Gold prices are producing a zigzag corrective wave since $1677 lows. Further, waves (a) and (b) of the correction are in place around $1834 and $1721 levels respectively. If the above is correct, bulls would be inclined to push prices above $1834 as Wave (c) unfolds.
The potential for Wave (c) to terminate remains through $1865 highs, before bears are back in control. The metal faces immediate resistance around $1780-90 mark, and a break higher would terminate a lower degree impulse wave before correcting lower.
Traders might be willing to initiate fresh long positions now and add further on a pullback towards $1740-50 mark. Potential risk remains just below $1721 while target remains above $1834 mark going forward.
The Profinacademy.com Team
Bitcoin dropped close to $46000 mark on Monday before finding support again. The crypto is seen to be trading around $46500 mark at the time of writing as bulls remain inclined to be back in control.
The US dollar index spiked through 96.85 mark on Wednesday on the back of the Federal Reserve interest rate decision.
EURUSD is finding support from its consolidation lower range around 1.1260-70 and could resume its rally from here soon.