Rally Above Friday’s High of 2,518 Confirms Strength
A bullish signal will be generated on a rally above today’s high of 2,518 and set the stage for a rally into new record highs. Gold hit a new record high of 2,532 last week. The advance has the potential to continue gold’s long-term uptrend once that record high is exceeded.
Since the bull breakout of a symmetrical triangle consolidation pattern last week gold is in a position to continue to rise. It is coming up out of a rising consolidation pattern that has been forming since the April swing high of 2,431. Notice the sharp advance before the consolidation phase. Gold has the potential to see a similar rise once it gets traction and begins to clear the triangle pattern.
First Upside Target of 2,543
The next upside target for gold is around 2,543, which will complete a rising ABCD pattern (purple). Since that price level is so close to the current record high of 2,532, it may be easily surpassed. Next up will be a long-term ascending ABCD pattern target where the CD leg of the advance is extended by 161.8% of the AB leg of the pattern.
The measurement begins from the September 2022 swing low. Subsequently, there is a price zone from 2,595 to 2,605, derived from a 127.2% extended ABCD target from the smaller rising ABCD pattern and a target from measuring the symmetrical triangle formation, respectively.
Support at 2,471 Needs to Hold
Of course, surprises happen, and a deeper retracement may yet occur before a breakout to new record highs. For example, if yesterday’s low of 2,471 fails to hold as support, gold will likely dip to at least the 20-Day MA at 2,452 before it finds support.
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