Gold Could Go Much Higher – Elliott Wave Analysis

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The Federal Reserve said that they will continue with the bond buying program for another $45 billion a month. It simply means more easing, more money printing to support the economy and that’s why market made a strong push higher today with EURUSD to 1.3100 and S&P500 close to the 1440 level.

I would expect to see commodities much stronger than that, especially gold, which is now reversing after an earlier push up to 1723, 0.38% in the green. Silver is doing much better its up more than 2 %.

US 10 year bond yields after QE4 December 12 2012

US 10 year bond yields after QE4 – Click image to enlarge

US treasuries are down and yields are higher, up more than 2.5% right now. Notice that s few days back, the price bounced higher from a lower triangle range higher in wave (d), still only fourth leg of a the pattern. With that said, the technical picture for US yields suggests that the market is still sideways here, but that break of the September highs will occur after wave (e).

So our view is bullish for this market, which is also bullish for stocks and bearish for USD if correlations remain in current shape.

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About Author

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!