Gold’s rally isn’t over yet.
In the Oct. 17, 2023, issue of the Institutional View, I highlighted the metal’s powerful bullish reversal from its support level of $1811 an ounce. After gold hurdled $1940 without breaking below $1900, my work generated a Buy signal for the metal.
Then, in the Dec. 29 issue of the Institutional View, I downgraded…
Gold’s rally isn’t over yet.
In the Oct. 17, 2023, issue of the Institutional View, I highlighted the metal’s powerful bullish reversal from its support level of $1811 an ounce. After gold hurdled $1940 without breaking below $1900, my work generated a Buy signal for the metal.
Then, in the Dec. 29 issue of the Institutional View, I downgraded bullion to a Neutral $2065, and I recommended that clients sell and take profits. Why? Because gold reached $2135 intraweek but was unable to close the week above $2100.
During the last week of February, gold’s technicals improved markedly when it posted a bullish reversal—a higher high than the prior day, a lower low than the prior day, and a close above the prior day’s high—off its 50-day moving average (see chart above). With its close above $2041 on Feb. 29 (it ended the day at $2046), gold hurdled the downtrend from $2135, generating a Buy signal at $2046, as reported in the Feb. 29 Institutional View.
The weekly chart above shows that gold broke out of a four-year rounding base to begin a new bull market. Closing above $2220, it would accelerate and climb quickly to $2400.
It’s the monthly chart above that’s the most exciting. Within a 12-year base, gold formed successively higher and shorter high-level consolidations at the top of the base. This illustrates that selling pressure continues to weaken as buyers begin to take control. Once gold has a monthly close above $2200, then my work would generate upside projections of $3600 to $4000.
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Andrew Addison is the author of The Institutional View, a research service that focuses on technical analysis.
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