Gold Price Forecast: Hits New Record High Amid Bullish Momentum

Gold breaks out to a new record high following a bullish crossover of the 20-Day MA above the 50-Day MA yesterday. The previous record high was 2,450, which was reached on May 20. Today, Tuesday, gold has reached a new record high of 2,467, at the time of this writing, and it continues to trade near the highs of the day.

New Record High of 2,467

An initial new high target for gold at 2,462 was already exceeded today, putting higher targets in scope. That pivot was a 161.8% extended retracement of the decline that begun from the August 2011 swing high. It still may act as an area of resistance as the high today is not much beyond the 2,462-price level. Watch to see where today’s close completes. Above 2,462 is more likely to lead quickly to an advance to higher price targets, rather than a daily close below that price level.

Higher Targets Start with 2,480

There are several higher targets shown on the chart from around 2,480 to 2,494. The lower price level for the range is a long-term target for a large rising ABCD pattern. It began from the July 2018 swing low of 1,160. An AB leg for the pattern ended at 2,031 in August 2020, while the beginning of the CD leg was at 1,615 in September 2022.

At the top of the price range is 2,494. That price level completes a 127.2% extended retracement of the most recent decline from the 2,450-trend high. There are two other price levels within the identified price range as well, giving further credence to the price range. Arguably, since the 127.2% target is based on a near-term pattern, it has a good chance of being reached within the current expansion.

Monthly Bullish Signal Supports Higher Prices

Higher prices are supported by recent price action. A monthly bull signal in gold was triggered earlier this month on a rise above June’s high of 2,388. Given that July is halfway complete, gold has a chance to end the month strong, in the upper third of the month’s price range. Also, a weekly bullish continuation signal triggered this week and gold is on track to end the week strong, in the upper third of the week’s trading range. If it does so, it has a good chance of seeing strong upward momentum heading into next week.

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