Gold Continues to Advance, Reaching a High of 2,048

Gold Forecast Video for 15.12.23 by Bruce Powers

Gold further advanced its sharp rally today that began on Wednesday. It took off on a move above yesterday’s high of 2,028 with little attempt at dropping beforehand. The high of the day was 2,048, hit before resistance kicked in with sellers back in charge. At the time of this writing, however, gold has fallen below the halfway point of the day’s range. That is a minor sign of short-term weakness.

Trendline Marks Resistance at 2,028

Notice that today’s high tested resistance of the lower uptrend line, almost exactly. Once support is busted the price tends to eventually retrace to test that support area as resistance. That is what we see today in gold. An initial minor resistance area at 2,040 was exceeded today but gold looks like it is on track to close below that price level.

Last Month’s High of 2,052 is Critical

Of note is last month’s high of 2,052, as it represents the next significant resistance area that the bulls need to overcome. Last month triggered a bullish breakout above October’s high. This month will likely be either an inside month or a monthly bullish continuation will be triggered on an advance above 2,052 and then confirmed on a daily close above that price level.

Nevertheless, yesterday’s 1,973 low should be the end of the bearish retracement. The price level is marked by the 78.6% Fibonacci retracement level from the internal uptrend, along with a horizontal line derived from previous price structure showing that area as either support or resistance. Yet, the more significant indication that it is a bottom is shown by the bullish price action of the past two days. Of course, a drop below yesterday’s low of 1,973 will negate the developing bullish scenario.

Drop Below 2,024 is Short-Term Bearish

Today’s low is at 2,024, and a drop below it signals a deeper retracement into yesterday’s trading range. A day to a few of consolidation and/or retracement would be healthy for the uptrend. Yesterday’s low generated a higher swing low for the trend, making it a key part of the bullish trend price structure.

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