Gold Price Forecast: Hits Resistance but Higher Targets Remain

Gold Forecast Video for 19.02.24 by Bruce Powers

Following a pullback earlier in today’s trading session, gold recovered to exceed yesterday’s high and continued to rally. The next higher target area was reached on the day’s high of 2,015. As noted previously, the 38.2% Fibonacci retracement is at 2,015, and it matches a minor prior swing low (support, now resistance) at 2,015. Gold is set to end Friday in a strong position in the upper third of the day’s trading range. On a weekly basis, it is on track to complete a bull hammer candlestick pattern.

Second Day Up Hits Target

Today was the second day up in a rally that could have another day or more to go. Each of the past two days had relatively wide trading ranges that ended in the green. Frequently, markets will trade three days in a direction at a minimum. Each of the past two days gold hit a previously identified price target. Therefore, if it can keep advancing there is a good chance of reaching the next higher target around 2,025, before the advance exhausts. That higher level includes the 20-Day MA. Above there is the 2,030-price zone, which includes a prior record high from 2020, the 50-Day MA, and the weekly high for this week.

Weekly Bullish Setup for Next Week

A weekly bullish breakout will be triggered by a rally above this week’s high of 2,031. Since it represents a longer time frame a bullish reversal would be indicated that could see gold eventually rally into new record highs. That is the case if it doesn’t trade below this week’s low of 1,984. However, a drop below today’s low of 1,995 would be the first sign of weakness. That could be the beginning of another test of support around 1,984, or a failure of the existing rally. Characteristics of follow-through will hold the key.

Lower Support Zone Starts at 1,979

If 1,984 is busted to the downside, gold will be heading towards a potential support zone from 1,979 to 1,973. And such a drop puts the 200-Day MA at risk of being tested again as support. The 200-Day line is currently at 1,965.

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