Never miss a story from Jeremy Wagner

Subscribe to recieve updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from Daily FX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Jeremy Wagner

You can manage you subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Gold prices continue to consolidate inside a range covering about $1200 to $1295. The Elliott Wave model we are following hints that we could see an eventual breakout above $1295, though it does call for some continued range bound trading until a triangle pattern terminates.

According to the model, I am showing gold prices are grinding sideways in a ‘B’ wave triangle. We are a little more than halfway through this triangle as the market trades higher to complete the ‘d’ wave. So long as gold prices stay between $1204 and $1295 the triangle pattern is the preferred pattern we are following.

Gold price Elliott Wave count July 24, 2017

Once this triangle exhausts, then we will anticipate a breakout higher above $1295. Once we get closer to the end of the triangle, we can identify some potential targets to the upside. Therefore, as a trader, we want to position in the direction of the trend and look for buying opportunities.

To learn more about trading Elliott Wave triangle, view this hour long webinar recording solely covering the triangle pattern with a free registration.

In the meantime, shorter term traders may recognize the impulse pattern developing from the July 9 low. It appears we are in the final stages of that small impulse and a correction lower towards $1235-$1245 may be nearby. We anticipate the correction lower to be a partial retracement of the July 9 up trend. That correction, if it develops, may offer interested long traders an opportunity. The key level to the bullish bias is the blue wave ‘c’ low near $1204.

The IG Client sentiment reading for gold is at +2.89. The number of traders net long gold have decreased since the beginning of July. This could be a subtle clue for bullish traders as the sentiment reading has been dropping from even more extreme levels. Follow this live reading and learn how to trade with sentiment at this link.

Bottom line, we are anticipating gold prices to find some support and bounce closer to the $1295 ceiling.

This is a shorter term outlook for gold. Read our quarterly gold price forecast to see what may be influencing the longer term cycles.

---Written by Jeremy Wagner, CEWA-M

Discuss this market with Jeremy in Monday’s US Opening Bell webinar.

Follow on twitter @JWagnerFXTrader .

Join Jeremy’s distribution list.

AUD/USD is near its highest price in 2 years; see what is next for the pair.