Kitco: What I Told Investors at the 50th Anniversary New Orleans Investment Conference
Elliott Wave theory uses technical analysis within the broader perspective of a five-part wave. Such waves can be seen within any number of markets, from the overall index to individual stocks, and even to commodities.
Under the Elliott Wave, there are five distinct patterns. Waves 1, 3, and 5 are uptrends, with the fifth wave being the strongest. Waves 2 and 4 are pullbacks that partially unwind the move higher in waves 1 and 3.
Right now, the gold market appears to be setting up for a fifth wave higher. If so, the metal could end up moving to over $3,000 per ounce in late 2025 or by 2026.
That move comes in-line with the fundamentals for gold. New supplies remain tight, even with China’s recent announcement of a massive discovery. Demand remains strong, particularly from central banks, including those of China and Russia.
With strong price momentum underway, the metals price may first consolidate in the first few months of 2025. That will create a pause in time that can help push the metal higher.
Once that’s done, the final wave 5 in a commodity tends to be a massive move higher. If this wave theory plays out, gold could have another outstanding year in 2025.