The sideways continuation of Intermediate wave (2) is decidedly possible, but this is currently seen as the alternate option.
XAU/USD has a correlation with DXY which has the following weekly view:
A weaker DXY will produce a stronger XAU/USD..
For XAU/USD: The projections of the larger fractals show that an eventual new ATH is on the cards.
The Cup and Handle pattern projection is revised to be $1467 (see Link: below) which is seen as too conservative for the typical Elliott projections. However, the situation of the Cup and Handle is bullish.
The hourly chart gives a replication set up..
LINK:
XAU/USD Mid-June Update
The Elliott nominal projection for Minor wave 3 is..
The typical target for Minor wave
3 is $1568 (see chart above). This requires a Minor wave
3 height of close to 4 times that presently on the chart.
Add (2) - 2 = $105.75 to the target for
3 and this projected target for Intermediate
(3) is $1673.75.
Each fractal can be similarly projected, for example..
Projecting target for Primary wave
[3] =
[2] + 1.62
[1] = $1655 to $1693 (two low points of
[2]). The above projection of
(3) points to $1693 being more likely.
For Primary wave
[5] see below:
LINK: Previous XAU/USD Charts
LINK: Newer XAU/USD Charts