After a correction, we then expect the gold price to move higher again in another multi-year rally, taking us to a major top in 2022, a 21 year super rally in precious metals the like of which the world has never seen before.
It is clear from the chart below that gold makes a cyclical top every 22 months. The last such major top was in September 2011, giving us our next cyclical top in July 2013.
It is now clear, after 18 months of corrective action in gold, that the Wave 4 pattern is a complex 3-3-5 correction, made up of two linked ABC corrections together with a final 5 wave impulse decline.
We are approaching the end of the final 5 wave decline, our best guess is that we have just started Wave v of 5, the final decline. The chart below sets out this Elliott Wave count in detail.
After finally making a bottom, we expect the price to move sharply higher over the next 4 months to arrive at our projected top in July 2013 at around $1,900, potentially forming a large “double top” on the charts.
We then expect a correction to unfold in gold and silver, taking gold prices back to $1,700-$1,750 before the next major rally begins, Wave 3 of 5, taking gold far beyond $2,000 in the next few years.
It is often the case that Wave 5 in a commodities rally will be the strongest and most powerful wave, lasting longer than even Wave 3 and often extending to a more complex 7 wave structure.
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