In the original article “Elliott Wave Analysis of Gold – July 14th, 2025” by EWM Interactive, the author delves into the future price movements of gold using Elliott Wave Theory. This technique is a popular form of technical analysis based on the idea that financial markets move in predictable cycles or “waves” influenced by investor psychology. With gold remaining a focal point amid ongoing uncertainty in global markets, analyzing its price action becomes crucial for traders, investors, and analysts alike. Below is a detailed, rewritten, and expanded version of the original article—along with additional insights on Elliott Wave analysis, gold market forces, and external forecasts as of mid-2025.
Overview: Gold in a Tumultuous Market
The gold market often functions as a barometer for economic stress, inflation expectations, and risk sentiment. As of mid-2025, gold has experienced significant volatility, primarily driven by:
– Central bank monetary policy uncertainty (the Fed, ECB, PBoC)
– Geopolitical instability in Eastern Europe and Asia
– Persistent inflationary pressures in both developed and emerging economies
– A weakening U.S. dollar and fluctuating real interest rates
– Record central bank gold purchases bolstering demand
Price action confirms the strategic role gold plays as both a commodity and a monetary hedge. Now, more than ever, Elliott Wave analysis offers a structured lens through which to forecast potential turning points and continuation patterns in gold’s price path.
Technical Basis: Understanding the Elliott Wave Count
As highlighted in the EWM Interactive article, the Elliott Wave structure offers a fractal-based model wherein movements are classified into trending waves (impulse waves) and corrective waves.
Gold’s medium-term outlook shows signs of significant bullish potential. According to the analysis, the yellow metal has completed a complex five-wave advance followed by a clearly corrective structure. Here’s a more structured breakdown of the wave analysis discussed:
Primary Wave Count:
– From the lowest point during the 2023 correction (~$1,810), a five-wave impulse unfolded, completing just above $2,400 by early 2025.
– This advance counts clearly as:
– Wave 1: $1,810 to $1,950
– Wave 2: a zigzag decline to $1,880
– Wave 3: a powerful rally peaking near $2,250
– Wave 4: shallow correction to $2,100
– Wave 5: final push toward $2,420
Corrective Structure:
– Following this impulsive sequence, gold has entered a three-wave A-B-C correction.
– The wave A declined from $2,420 to $2,180.
– Wave B was a corrective bounce reaching ~$2,300.
– Wave C appears to have ended (or is close to ending) in the $2,050 to $2,100 area—a key Fibonacci retracement zone of the prior five-wave advance.
Bullish Implications:
If this interpretation holds true, it suggests that the correction is over or nearly complete. Gold may be poised to begin another major bullish sequence—a large five-wave advance as part of a larger uptrend on the weekly or even monthly chart.
Here’s why this matters:
– Wave 1 of the next move higher could take prices near $2,300–$2,400 quickly.
– Wave 3 tends to be the longest and strongest, potentially targeting new all-time highs above $2,500 or $2,600.
Technical Confirmation Tools & Indicators
While Elliott Wave analysis provides the framework, additional technical tools help confirm the setup and timing:
1. Fibonacci Retracements:
– Wave C bottom aligns with the 61.8% retracement of the prior five-wave move (support zone: $2,050–$2,100).
– Often, corrective waves terminate in this golden ratio zone.
2. RSI (Relative Strength Index):
– Daily RSI
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