GOLD: If Fed Is On Pause Then Gold Is On Pause Too!?
GOLD: If Fed Is On Pause Then Gold Is On Pause Too!?
As you may have noticed, gold has seen a sharp reversal in recent weeks, and many traders and investors are now wondering whether this correction will be quick and shallow or last longer.
From an Elliott Wave perspective gold seems like it may try to complete an extended wave three, and put wave four pause in play. But what can trigger a retracement?
Well we need to consider US monetary policy. Powell didn’t convince markets last week about further cuts in December, so if rates stay on hold for the next few months or even longer, gold may continue to pause. The metal usually rallies more easily when expectations for rate cuts rise, not fall. So, both from a macro and wave perspective, this likely fits as a higher-degree fourth-wave correction. Overall, this correction could last longer, and once deeper prices flush out late buyers and weaker positions — possibly in the coming months — that’s when we’ll likely be more confident calling for the next major leg higher, ideally early in 2026.
So looking to buy? Patience!
BTW, I also recorded the week ahead video this weekend, where I covered also FX, Cryptos and metals. Click here
Grega
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