Deciphering Gold’s Charts: Signals Point to Upward Momentum

Gold Forecast Video for 23.11.23 by Bruce Powers

Gold has a rest day as it trades inside day on Wednesday, with a high of 2,006 and a low of 1,987. Those are the price levels to watch as an indication as to the next direction. Clearly, gold is in an uptrend that began with a very strong 15-Day advance of 11.0%. Resistance was seen at 2,009, now an important pivot, as an advance above will trigger a continuation of the bullish trend. Support of the 50-Day (orange) was successfully tested as support recently, along with the completion of a 38.2% retracement.

Continuation Higher or Short-Term Pullback?

A bullish weekly signal triggered this week as gold tests resistance around the trend high. Today’s slight pullback is not significant by itself. However, for the month, gold has traded within last month’s range. It wouldn’t be surprising to see it stay stuck within the range until next month. This would leave an inside month breakout to trigger in December. Therefore, consolidation or another dip to test lower levels may occur until then. Price levels to watch include the 20-Day EMA at 1,969 (not shown) and the last minor swing low of 1,965.

Next Higher Target of Note

Nevertheless, if the 50-Day EMA continues to act as support, the trend is clearly rising, and it certainly could accelerate as we saw in the first leg up from October’s low. The next higher target zone shown on the chart goes from around 2,024 to 2,041. It consists of the confluence of multiple Fibonacci price levels and the peak from August 2020. Once that zone is cleared, gold should be ready to attack record highs. However, markets don’t like to make it too easy. This is why there may be another pullback, although minor and some chopping around before the from is ready to breakout above 2,009 from here.

Weakness Will Allow More Buyers to Join

Short-term weakness will give buyers a chance to expand their holdings anticipating a shot at an eventual record high breakout. Gold has been basing since August 2020. The longer the base, the stronger the potential move following a successful breakout.

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