Gold Price Set to Hit $4,200 As Elliott Wave and Fibonacci Analysis Confirm Bullish Rally

Gold’s bullish trend continues, driven by Elliott Wave Theory and Fibonacci levels.

Analysts project targets of $3,333 and $4,200, with corrections near key resistance.

Consistently higher highs and lows confirm strong buyer control and long-term strength.

Gold prices have continued their impressive rally against the US Dollar (XAU/USD), maintaining a strong upward trend. The multi-year analysis reveals a bullish impulse wave structure supported by Elliott Wave Theory and Fibonacci extensions.

Bullish Run Analysis

According to a detailed analysis from CryptoBullet, Gold has shown a robust bullish breakout driven by a classic Elliott Wave formation. The chart illustrates a complete ABC correction, marked by lower highs and lower lows, ending the corrective phase. This was followed by a five-wave impulse structure, indicating continuation of the secular trend.

Source: CryptoBullet

Monitoring the action in the markets, CryptoBullet picked up key Fibonacci extension points such as 1.618 and 2.618. Price action surpassed the 1.618 point and reached as high as the 2.618 extension, which shows very bullish pressure. The rise from the wave (C) low to the wave (5) peak is a 74.96% increase, with prices moving up from around $1,800 to well over $3,050.

Monitoring market trends, CryptoBullet noted higher highs and higher lows, signaling buyer control of the trend from beginning to end. He referred to a potential mid-term correction as Gold approached the 2.618 Fibonacci extension, a level typically linked to resistance. CryptoBullet emphasized monitoring the level to determine potential reversals in the market.

Additional Insights on the Bullish Outlook

More examination by Dark Defender confirms CryptoBullet's bullish prediction, referring to long-term levels. Observing the market, Dark Defender confirmed the uptrend and noted a correction in 2022, where Gold briefly dropped to $1,810 before it resumed its uptrend. He confirmed that the market reached the first target in October 2024 before rebounding from a very important Fibonacci level.

Source: Dark Defender

Dark Defender, in December 2024, projected a surge to $3,330, pointing towards a consistent rise. He said Wave 3 of the current Elliott Wave cycle would push prices to $3,333 and Wave 5 to $4,200. Dark Defender's interpretation validated CryptoBullet's finding, pointing towards a strong Elliott Wave pattern behind the rally.

Monitoring price trends, Dark Defender highlighted how the ongoing rally aligns with Elliott Wave principles, where impulsive waves tend to be extended. He mentioned that the long-term target remains achievable if the trend holds. Both analysts agree that Gold’s impressive rally, supported by technical analysis, points to a bullish long-term outlook.