Gold Prices: At A Key Do-Or-Die Juncture | Elliott Wave International

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Gold Prices: At A Key Do-Or-Die Juncture
EWI's Metals Specialty Service reveals why one group of gold traders could now have their big chance.

By Nico Isaac
Wed, 13 Jun 2012 16:15:00 ET

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(Editor's Note: On June 13, our Metals Specialty Service intraday analysis said: "Gold finally appears at a key, do-or-die juncture." )

There are probably more people following every move of gold prices right now than tween heartthrob Justin Bieber's Twitter feed.

You'd think with that kind of round-the-clock vigilance, gold traders would be able to see the market's biggest moves coming from miles away. That, however, is not always the case. The reason being: those in charge of said vigilance -- i.e. mainstream financial experts -- use external events to determine the near-term trend underway in financial markets. Their interpretation of the events is always changing, and so the outlook is always changing, too.

Here, the following slew of recent news items on gold capture the clashing fundamental camp:

Gold falls on negative economic data: "Gold Edges Lower As Worries Over Europe Simmer... and euphoria from Spain's bank aid plan dissipates." (Forbes)

Gold rises on negative economic data: "Gold Retains Gains As Spain Worries Mount." (Reuters)

Experts expect the Fed to approve Q3 so gold rises: "Gold Stays Afloat On Renewed Hopes... the Fed will announce fresh accommodation measures at its upcoming meeting June 19-20." (Wall Street Journal)

Wait, the experts actually anticipate a dovish Fed; gold falls: "Gold Loses Lustre.... Most economists don't expect further moves at the Fed's next policy meeting June 19-20." (AP)

Now contrast that with the objective framework of Elliott wave analysis. In brief: There are 13 known wave patterns that appear on the price charts of financial markets. Each of these structures adheres to specific rules and guidelines that cannot be bent or amended at will. When you know how each pattern develops, that allows you to anticipate upcoming price action before it occurs. All without even a glance at the external factors.

And on June 13, EWI's Metals Specialty Service identified one very specific, duplicating, 3-wave pattern known as a double zigzag underway on gold's daily price chart (reprinted below):

For newbies, a single zigzag is a simple, A-B-C pattern. When zigzags occur twice (or at most three times) in succession, each zigzag is separated by an intervening "X" in what is called a double (or triple) zigzag.

With a clear wave structure in place, Metals Specialty Service is now gathering additional clues to build a case for gold's next big move. That includes Relative Strength Indicator readings and a chart of gold priced in euros.

The end result is a message of great urgency, as the June 13 Metals Specialty Service intraday update on gold writes:

"Gold finally appears at a key, do-or-die juncture. This is the most important juncture we have seen in quite some time. [One group of gold traders has] their chance here and let's see what they can do with it...I am going to let the price action from here determine the likely outcome."

The latest Metals Specialty Service forecast gives you specific price points on the gold charts that serve as levels of support and resistance to help you decisively introduce one trend.

Subscribe to EWI's trader-focused Metals Specialty Service today for the full details.

GOLD: Where Are Your Best Opportunities at This Critical Juncture?

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Tags: Elliott wave, Elliott Wave trading, euro, europe, fundamental analysis, Gold, precious metals, Relative Strength Index (RSI)

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