Written by Jim Welsh
Possible Target for Gold
Wave A carried Gold from 1046 (A) to 1375 A = 329. Wave B low was 1123. If wave C is equal to wave A, wave C would reach 1452.
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Wave 1 of C topped at 1365. A dip below 1301 would complete an a-b-c from 1365 and wave 2 of C. Wave 3 of C could be expected to carry Gold up at least 129 (since wave 1 was 129) from the low of wave 2 (yet to be established) of C and last 6 to 8 weeks.
If correct, this analysis suggests Gold could rally to $1400 – $1425 by mid July after falling below $1301 by May 18.
T​his is why I made the following recommendation in the May 7 Weekly Technical Review:
Buy a 50% position in Gold or the Gold ETF GLD, if Gold trades under $1295. Increase it to 100% if Gold trades under $1275.
