Gold Price Forecast: Hits Record High of $2,721, Eyes on Higher Targets

Gold prices continued to strengthen on Friday, reaching a new record high of 2,721. Buyers remain in charge at the time of this writing as the precious metal continues to trade near the highs for the day. Today’s bullish price action shows upward momentum improving relative to the prior three days since the initial breakout of a bull flag trend continuation pattern. Notice the wider trading range today relative to the prior three days. A strong daily and weekly close today will put gold in a solid technical position to challenge higher potential targets.

First Target is 2,724

The first target zone is the initial target for a rising ABCD pattern at 2,724, as shown on the chart in purple. It would be an obvious location to begin to see resistance that might lead to a pullback. Subsequently, if it is exceeded, 2,754 is next up on the agenda. Reaching that price level completes a 250% extended retracement of the bearish correction that began from the March 2022 peak. Also, keep an eye on the top parallel channel rising trendline as it may provide additional clues when the two price levels are approached.

Bull Flag Points to 2,815

Nonetheless, a higher potential target at 2,815 is derived from calculating the measuring objective for the bull flag. The breakout for the flag triggered following a successful test of support at the 20-Day MA earlier in session. That was the launch pad. There is also a slightly earlier target a little lower than the flag target at 2,797. That price level will compete a 200% retracement of the bearish correction that began from the 2011 peak at 1,921.

First Support to Watch at 2,686 Breakout Level

On the downside, a decline below today’s low of 2,692 indicates short-term weakness and could lead to a deeper pullback. The breakout to new highs occurred above 2,686 and it is an obvious potential target to be tested as support. Nonetheless, if it happens before new highs for gold a deeper pullback seems likely given that there has only been one bullish follow-through day, which was today. Key is going to be the 20-Day MA. Since the 20-Day MA was reclaimed on August 8, it has done a good job of identifying an area of trend support. Therefore, it should continue to do so and if it doesn’t, that is a warning sign.

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