XAUUSD Forecast: On December 20, 2024, GOLD prices saw a significant rebound after a period of declines, with the price of an ounce rising by around $37 to reach $2,626.16, marking a 1.3% increase in spot trading.

XAUUSD - Analysis - Dec-20 2244 PM (1 week)

On the higher timeframe, the chart illustrates a strong upward trend, with XAUUSD moving within a long-term ascending channel.

  • Waves 1 to 3: The ascending channel began at the previous Wave 4 low of 1810.49, reaching a peak at 2790.23.
  • Wave 4: The current wave represents a natural correction within the uptrend, with the Fibonacci 38.2% level at 2400 acting as a key support.

Outlook: If the current correction holds above the 2400 support level, the fifth ascending wave could potentially push the price toward levels close to $3,000.

XAUUSD - Analysis - Dec-20 2243 PM (1 day)

In this daily chart, the wave progress according to Elliott’s theory is clearly visible. We observe that XAUUSD completed the third major wave (3) at the level of 2790.23, followed by a downward corrective wave consisting of three parts (A-B-C).

  • Wave A: The initial correction began after the peak at 2790.23, representing the first selling pressure.
  • Wave B: A short upward movement in the middle of the correction, reflecting the buyers’ attempt to regain control, but it faced strong resistance.
  • Wave C: Extended downward, indicating the potential end of the correction at the expected fourth wave (4) near the support area around 2400 dollars.

The chart predicts a fifth upward wave (5) that could drive the price back to levels higher than the previous peak at 2790.23. This reflects strong optimism for the bullish trend after the correction ends.

GOLD Forecast On 4 Time-Frame

XAUUSD - Analysis - Dec-20 2313 PM (4 hour)

In the shorter time frame, we see that the price is moving within a downward corrective wave following the completed wave B at 2726.27.

  • Wave (i): The downward movement sharply began after the peak at 2726.27, reaching support at 2582.70.
  • Wave (ii): A short upward correction, but the chart shows the 50% and 61.8% Fibonacci levels as strong resistance areas (2625 – 2640).

Outlook: The chart clearly indicates the continuation of the downward wave (iii), which could push XAUUSD toward lower support levels (perhaps 2550 or lower). The notable point in this frame is a clear warning: “We Do Not Recommend Selling” suggesting that any decline may be limited or temporary.

XAUUSD Forecast Summary

  • Weekly Chart: The overall bullish trend is strong with a natural correction in wave four.
  • Daily Chart: A downward correction in wave four, which may end soon.
  • 4-Hour Chart: Continuation of the downward correction in wave (iii) on the short term, with an expected near-term rebound.

Based on this analysis, the medium to long-term outlook remains positive, with the possibility of a short-term correction before the bullish trend resumes.

Share this article