Gold hit a new record high of 2,532, signaling a strong uptrend. Further gains are expected, with targets at 2,566 and beyond.
Gold reached a new record high of 2,532 on Tuesday before pulling back intraday. A close above the halfway point of the day’s range at 2,514 today should be a stronger indication than a daily close below it. Gold is bullish on the daily chart and higher time frames as it just broke out of a base covering several months last Friday. Today’s advance is a third day up with higher daily lows and higher daily highs, indicating the progression of an uptrend. A bullish breakout was triggered today by a rally above yesterday’s high of 2,509. Yesterday was an inside day and represented a rest and consolidation day.
The day’s high of 2,532 was shy of the next higher target level at 2,543, which is an initial target from a rising ABCD pattern. Extended targets from the pattern include the 127.2% extension at 2,595, and the 161.8% extended target at 2,661. Other potential targets to watch for potential resistance on the way up include a 161.8% extended target at 2,566. That is from a long-term rising ABCD pattern that begins from the September 2022 swing low of 1,615. The second leg up begins from the October 2023 swing low.
Last week’s breakout to new record highs for gold was accompanied by a breakout of a symmetrical triangle consolidation pattern. Calculating a measuring objective from the pattern provides a potential initial target of 2,605 (red arrows). That is very close to the 127.2% extended target of 2,595 and therefore they should be considered together as a price range.
Longer-term targets are higher than the 161.8% extended ABCD target at 2,661. There is a long-term target starting with 2,715. That price level is an extended retracement from the decline off the 1,921 high from September 2011. The extension is 200% of the decline. It is interesting that a long-term measured move based on percentage performance also points to that price zone giving it added potential significance. Long-term measured provide potential more significant price levels. And this makes it more likely they will eventually be encountered eventually. The long-term monthly chart is supportive of such a scenario as well.
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Bruce boasts over 20 years in financial markets, holding senior roles such as Head of Trading Strategy at Relentless 13 Capital and Corporate Advisor at Chronos Futures. A CMT® charter holder and MBA in Finance, he's a renowned analyst and media figure, appearing on 150+ TV business shows.