Gold Price Forecast: Inside Week Sets Stage for Potential Bullish Continuation

Gold is set to close the week with an inside week. This week’s trading range is contained within the price range of last week. It sets up a potential bullish continuation trigger on the weekly time frame if this week’s high of 2,189 is exceeded to the upside. An inside week shows price consolidating on that the weekly time frame.

Weekly Consolidation Shows Strength Remaining

Notice that this week’s price range occurred near the high of last week’s range. That shows strength remaining as demand was strong enough to keep gold from sliding further. It reflects a minimum impact from selling pressure this week as the pullback held support around the 8-Day MA (blue). A decisive breakout above this week’s high would be the first bullish signal. Following that, further signs of strength would be needed for indications that the continuation of the rally is sustainable. Of course, the recent high of 2,195 would be next on the agenda. Ideally, the weekly breakout is strong enough to quickly push through that high.

Higher Price Targets

Assuming that is the case, gold would then be heading toward a price range marked Fibonacci confluence of three extended measurements. That range is from 2,235 to 2,247. It includes the 161.8% extension of the retracement from the decline off the May 2023 swing high. Also, the 161.8% extension of the decline following the new record high in December is included.

Bearish Signal Likely Leads to Deeper Pullback

Nonetheless, today’s price action shows a minor weakening sign. It looks like gold may close below the 8-Day MA for the first time since the advance accelerated on February 29. This could be a clue that eventually leads to further weakening. However, a bearish signal would be needed and that doesn’t happen until gold drops below this week’s low is 2,151. The more significant support level looks to be down near the 50% retracement at 2,088. It is matched by the December 25 swing high, which gives it more weight than if the indicator was by itself. Higher levels to watch are marked on the charts.

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