There is a strong probability that gold will rise to 1450 within the year, according to Estêvão Oliveira, Head of Technical Strategy at Haitong Bank.
Oliveira believes the recent correction from the mid-2016 high has completed and that gold is likely to rise again very soon. His analysis, which is primarily based on Elliott Wave theory, suggests that the rally will unfold in a similar fashion to the rally from the December 2015 low (1046) to the mid-2016 high (1375). When this difference is added to the December 2016 low of 1122, it suggests a price of 1450 (see Chart). Oliveira stresses, however, that for confirmation of this scenario it’s important to see an impulsive 5-wave rise towards the 1450 area.