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Gold is operating within a medium-term ABC structure, and recent reactions suggest that prices are retreating slightly from the overhead resistance area around 4,730-4,770 points. Kelly believes that this rejection does not completely eliminate the prospect of recovery. Rather, it suggests that the market may need another correction before attempting its next move higher.

⟡ Market structure

The broader chart is still moving within an ascending channel, with price reacting to lower support areas around 4,366 before moving higher again. The rebound has reached the resistance area around 4,738-4,773 points and sellers are starting to emerge.

This makes it more likely that the current move will develop into a corrective retest of the buy zone before continuing.

➤ Critical level

◌ 4,738–4,773: Strong resistance and target area
◌ 4,638: Middle support level of the range
◌ 4,458–4,470: Retest the buy zone
◌ 4,366: Major support and cancellation areas

⌁ Elliott Wave’s Perspective

From an Elliott Wave perspective, gold appears to be developing within a medium-term ABC recovery structure. The current rejection may be part of a brief correction phase before wave C attempts to move higher.

As long as prices remain above lower support structures, the broader recovery path remains valid. A clean reaction in the buy zone will strengthen the case for further moves towards the upper target zone.

▸ Trading scenario

Preferred option: wait for price to adjust into the buy zone from 4,458-4,470 and watch for confirmation of the uptrend.

Admission area: 4,458–4,470
Stop Loss: Below 4,366
Take profit 1:4,638
Take Profit 2: 4,738
Take Profit 3: 4,773

If the price falls below 4366, the ABC bullish recovery structure will be weakened and the market may require a new interpretation.

⌁ Kelly’s POV

For Kelly, this is not a chasing-to-the-top structure. Gold has rejected resistance, so the most logical idea is to wait for a correction in the buy zone and see if buyers come back.

The recovery is still there.
But better structure may come after a dominant retest rather than chasing resistance.

Please share your opinions below.

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