Gold (XAU/USD) continues to exhibit a strong bullish trajectory, firmly maintaining its upward trend since establishing a significant low on May 15, 2025. The price structure suggests that the next major bullish leg may already be in motion, supported by a clearly defined Elliott Wave pattern.
Wave 1: Impulsive Structure from May 15 Low
The rally from the May 15 low unfolded as a five-wave impulsive sequence, characteristic of a first-wave move:
Wave ((i)) advanced to $3,252.05
Wave ((ii)) corrected lower to $3,153.47
Wave ((iii)) surged to $3,345.40
Wave ((iv)) dipped to $3,278.79
Wave ((v)) completed wave 1 at $3,365.93
This initial advance confirmed bullish momentum and laid the groundwork for further gains.
Wave 2: Double Three Correction Completed
Following wave 1, a wave 2 correction unfolded as a complex double three (W-X-Y) pattern:
Wave ((w)) declined to $3,284.40
Wave ((x)) rebounded to $3,325.51
Wave ((y)) completed the correction at $3,245.20
This corrective structure appears to have fully matured, setting the stage for the current bullish phase.
Wave 3 Underway: Bullish Confirmation on Break Above $3,365
The ongoing advance marks the start of wave 3, typically the strongest and longest in an Elliott Wave cycle:
Wave ((i)) of wave 3 peaked at $3,331.11
Wave ((ii)) retraced to $3,271.09
A decisive breakout above $3,365.93 (wave 1 high) has confirmed wave ((iii)) is now in progress
This breakout reinforces the bullish continuation outlook.
Outlook and Key Levels
As long as the key pivot at $3,245 holds, gold remains positioned for further gains.
Pullbacks within wave 3 are expected to unfold in 3, 7, or 11-swing corrective forms, offering potential buying opportunities for traders aligned with the trend.
The near-term target for wave ((iii)) lies above the $3,400 mark, with longer-term projections favoring a test of the $3,500 region in line with wave 3 extension targets.
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