Gold: Bang on, what is next?

elliott wave gold mcx Dec 28, 2023

Gold:  Bang on, what is next?

Gold continued to move in strong uptrend. Gold is following classis Elliott wave theory. Elliott wave helps us to navigate the trend of the market. See below how it has helped to derive path for Gold.

Look at below the charts and detailed research on MCX Gold taken from our Monthly research report of December 2023 – The Financial Waves Monthly update

MCX Gold Weekly chart Anticipated as on 14th December 2023

MCX Gold Daily chart Anticipated as on 14th December 2023

MCX Gold Historical performance Anticipated as on 14th December 2023

Wave analysis as on 14th December 2023:

During the month of November Gold witnessed rally of more than 7% and not only achieved our target of 62000 but also moved way above it. During this whole year Gold surged more than 16%. Gold prices have almost always risen as the economy weakened.  A weakening US dollar, Hawkish stance of Federal reserve were one of the reasons for this rally.

Since last 5 years Gold has shown a rise of more than 118% which can be seen in the above chart.


Closing % change

December 2018


December 2019


December 2020


December 2021


December 2022



The above table is showing interesting data from history. This is saying that since past 5 years Gold has closed on a positive note at the year-end i.e. in the month of December. So, history is suggesting that this year also we might get a close of December series on a positive note.

Now let us look at Technical perspective. On the weekly chart, we can see that after making a fresh record high prices witnessed rejection from the upper bands. Prices still have not given a close below previous week’s low which keeps overall tone on to positive sign. A close below it will be a first of weakness. As we know that wave 3 of (3) is ongoing on the upside which is a strongest one as per guidelines.

On the daily chart, prices are still trading above the cloud. After a sharp rally chances of profit booking continuation are there. However, as long as price stays and holds above the cloud medium term bias remains positive. As per this, nearest support can be placed at 60200 levels. 

In nutshell, outlook for Gold remains positive. A breach above 62850 is must to resume uptrend with the targets of 63800-64100. While on the downside 60200 is the support. If prices manage to give a break below 60200 then it will be a sign of concern.

Gold Daily chart Happened as on 28th December 2023

Prices moved precisely in sync with our expectations and as mentioned since it was an impulsive rise, we achieved our target 1 of 63800 levels. It has potential to achieve our target 2 of 64100 levels. We have been able to capture movement of more than 3.9% in just 10 trading sessions.

For now, trend remains positive and one can use dips as a buying opportunity with the targets of 64100 levels.

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