Gold Price Forecast: Nears New Record Highs as Bullish Momentum Builds

Gold is on track to end Friday with a higher daily high and higher low as a breakout above Thursday’s high of 2,515 was triggered. The high today was 2,518 but it is not yet clear whether gold will end the day above that price level. Nevertheless, it continues to show strength as it trades near the highs of the day. This provides a bullish setup off the first test of support at yesterday’s low of 2,471. What is telling is that support was seen at the top line of a symmetrical triangle consolidation pattern following a bullish breakout last Friday.

Rally Above Friday’s High of 2,518 Confirms Strength

A bullish signal will be generated on a rally above today’s high of 2,518 and set the stage for a rally into new record highs. Gold hit a new record high of 2,532 last week. The advance has the potential to continue gold’s long-term uptrend once that record high is exceeded.

Since the bull breakout of a symmetrical triangle consolidation pattern last week gold is in a position to continue to rise. It is coming up out of a rising consolidation pattern that has been forming since the April swing high of 2,431. Notice the sharp advance before the consolidation phase. Gold has the potential to see a similar rise once it gets traction and begins to clear the triangle pattern.

First Upside Target of 2,543

The next upside target for gold is around 2,543, which will complete a rising ABCD pattern (purple). Since that price level is so close to the current record high of 2,532, it may be easily surpassed. Next up will be a long-term ascending ABCD pattern target where the CD leg of the advance is extended by 161.8% of the AB leg of the pattern.

The measurement begins from the September 2022 swing low. Subsequently, there is a price zone from 2,595 to 2,605, derived from a 127.2% extended ABCD target from the smaller rising ABCD pattern and a target from measuring the symmetrical triangle formation, respectively.

Support at 2,471 Needs to Hold

Of course, surprises happen, and a deeper retracement may yet occur before a breakout to new record highs. For example, if yesterday’s low of 2,471 fails to hold as support, gold will likely dip to at least the 20-Day MA at 2,452 before it finds support.

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