FX.co ★ Elliott wave analysis of Gold for January 10, 2022

Gold has been locked inside a 6 months long triangle consolidation, that's in its final stages. The corrective triangle consolidation in wave 4 should be resolved in a break through resistance at 1,877 that will confirm the triangle consolidation has completed and wave 5 higher towards 2,704 is in motion.

The risk to this scenario is of course a break below support at 1,687 that will tell us that the triangle was a B-wave correction and a call for a decline to 1,511 before tuning higher. This is no way near being our preferred count, but we need keep this option in mind as long as resistance at 1,877 stays intact.