The year of 2016 is going to complete in next 2 days and it is important to know how Gold prices have behaved throughout the year. Here we can see that year of 2016 started with reversal on upside and Gold moved higher from 24500 to 32500 level within a span of 6 months. In this period’s bulls completely ruled and outperformance was witnessed. However post that Gold topped out and since then capitulation is ongoing. Assuming that prices can close the current year near 27000 level, Gold will still manage to gain 10% from the start of 2016. So what this indicates for 2017? Will next year Gold retest the high of 32500 level or low of 24500?

Below we have shown Gold chart taken from “The Commodity Waves Short Term Update”. Here we have hided the wave counts which is shown in original report. The important thing to watch is that prices were continuously finding resistance of 10 days Exponential moving average and recently prices have managed to cross above the same. This indicates short term reversal.

MCX Gold Continuous Daily chart:

MCX Gold,Elliott wave

(Part of research taken from today’s “The Commodity Waves Short Term Update”)

Wave analysis:

In the last update we mentioned that, “prices have retraced the last leg of down move in faster time which was not seen in the entire down move. This increases the minute wave (v) of wave (c) might have completed.”

In the last trading session Gold consolidated in a range. Post the sharp rise, this kind of consolidation indicates positivity.

As shown in daily chart, RSI has reversed from the zone of 30 level along with positive divergence and has given close above the prior bars high. This has changed daily bias into positive side. Close above 10 days Exponential moving average indicates that trend is reversing on upside. Now as long as prices hold above prior bars low trend will remain positive.

(60 mins chart is not shown purposely which is covered in the original report with Elliott wave)

As shown in 60 mins chart, prices look to be trading in minute wave ….and post the same Gold should move higher. 100 periods Exponential moving average which acted as resistance earlier will act as support now as per polarity reversal. On downside 26970 will continue to act as important support.

In short, Gold trend is positive. Move above ……

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