Heading Towards 2,772
The next higher target from chart analysis looks to be around 2,772. That is the initial target from a rising ABCD pattern (purple). At that price the two upswings in the pattern would match and generate a potential pivot. A pullback could follow or a breakout through that price zone if buyers remain in charge. Notice the acceleration in momentum as the angle of ascent for the near-term uptrend increases, along with today’s wide range green candle.
This reflects improving demand that may continue to improve. That could lead to an acceleration in the advance as market participants jump on board following the bullish reversal signal above a prior swing high.
Above Record High Points to 2,846
If gold can get above and stay above the record high of 2,790, it heads towards a target zone at 2,846, which is the 127.2% extended target for a rising ABCD pattern beginning from the February 2024 swing low of 1,984. It is quickly followed by the 227.2% extended target at 2,874 for a rising ABCD pattern that began from September 2022 low. It is also worth watching the rising trendline connecting the August swing low. In junction with other indicators, it can help provide guidance if approached.
Monthly Bullish Reversal Triggered
Finally, today’s bull breakout triggered a monthly reversal as last month’s high of 2,726 was exceeded. December was an inside month. Since the longer time frame takes precedence, a bull trend continuation signal was generated today, which increases the chance of gold reaching new record highs.
For a look at all of today’s economic events, check out our economic calendar.