Gold Price Forecast: Hits Record High, Eyes Further Gains Amid Strong Momentum

The rally in gold continued on Tuesday as the precious metal reached a new record high of 2,664. It continues to trade near the highs of the day at the time of this writing and will likely close near the highs, in the top quarter of the day’s trading range.

Hits Targets Zone

Today’s high has reached an area of potential resistance defined by the targets from two ascending ABCD patterns (purple, orange) that point to 2,660 and 2,661. Since upward momentum remains strong as gold heads towards the closing session, the 2,661-pivot area may yet be exceeded. If it is, gold may reach its next target of 2,675, which from a more recent and smaller rising ABCD pattern (not shown). Nevertheless, that will also open the door to higher targets since 2,675 is from a short-term pattern.

Next Higher Targets Start at 2,710

Higher targets then start with the confluence of two extended ABCD patterns pointing to 2,710. That price zone is followed by a bit of a longer-term target of 2,724. It may have some significance as that target completes an initial target from a large rising ABCD pattern beginning from the February swing low of 1,984. There are two legs up in the trend that began from the February low. We are in the second one now.

The first leg up saw a 447 point or 22.5% advance before finding resistance at 2,431. That was followed by a pullback and consolidation. The bottom of that subsequent activity begins the second leg up. Symmetry in price will occur at 2,724, making that level a pivot that may be exceeded or lead to a retracement. It is the more significant price level of those mentioned above.

Potential Support if Gold Pulls Back

On the downside, a pullback below today’s low of 2,623 may lead to a deeper pullback. A short-term internal trendline has been added to the chart and connects the pullback low from last week. It can provide a guide during weakness. Given its rising slope, relative to prior uptrend lines, it should hold support if current short-term upward momentum is to be retained. Other price levels to watch include last week’s high of 2,626 and this week’s low at 2,614.

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