Metals turned sharply lower yesterday and finish days in red which makes us bearish in the short-term as intraday reversal looks very sharp and impulsive. We think it's the first leg of lower and deeper price action.
Gold is coming sharply to the upside as a "safe haven" asset based on the latest US-Russia tensions. Higher inflation is also one of the reasons for higher metals. Technically we see prices are coming up from 1780 in an impulsive fashion after 1854 which also leads now to 1916 breakout. It looks like a strong move that might suggest a completed triangle. As such, be aware of more upside after a pullback in the 4-hour which we expect at least in three waves with first support around the 1854 area.
Gold 4h Elliott Wave Analysis
Silver is trying to wake up following gold recovery, but notice that correction somehow still looks unfinished, it's just consolidating at the lows. However, we believe that later this year, silver will be much higher when looking at the weekly chart, but calling a bottom can be tricky sometimes, especially when you don't have five waves up like in our case. At this stage it's important to focus on a 4h-chart, where we see a sharp decline from the highs, so for now we are tracking a three-wave A-B-C pullback with ideal support around 23.05 level. Any bigger and deeper decline back below 21.96 region would be a signal that bears are still in control.
Silver 4h Elliott Wave Analysis
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