Analyst Karapetjanc sees gold dip as temporary, expects rebound
Gold's sharp correction
Gold (XAU/USD) recently experienced a sharp downward correction, stirring interest among investors questioning its future trajectory.
According to analyst Karapetjanc, who previously highlighted the $2,700 support level as pivotal, this decline may not signal a full trend reversal but rather a temporary setback, potentially driven by stop-loss hunting activities.
Critical Weekly Close Could Signal Future Direction
This price dip has seen XAU/USD fall below its ascending channel and the 200-day Exponential Moving Average (EMA), heightening bearish sentiment. However, Karapetjanc points out that despite this breach, the weekly close will serve as a critical indicator. If gold manages to close above the $2,700 mark by the week’s end, it may reinforce a bullish outlook, suggesting the broader uptrend remains intact.
In analyzing the recent moves, Karapetjanc applies Elliott Wave theory, proposing that gold might have completed an ABC corrective wave structure, pausing around the 78.6% Fibonacci level—a common retracement point signaling a continuation of the bullish trend. This pattern, if confirmed, could indicate that gold is gearing up for another upward push, aligning with its longer-term trajectory.
Conversely, if prices continue to decline and fail to reclaim $2,700, the correction might extend further, signaling a possible long-term downtrend. Karapetjanc cautions investors to stay vigilant, noting that upcoming price action will provide essential insights.
As markets await the weekly close, Karapetjanc advises investors to closely monitor XAU/USD, as any rebound above $2,700 could set the stage for a potential gold rally, sustaining its place as a safe-haven asset amidst ongoing market uncertainties.
However, gold’s reputation as a safe haven suffered a significant blow today, with the metal dropping 3% following Trump’s re-election, which sent ripples through global markets.
