Gold Price Forecast: Surges to New High, Targets 2,661 and Beyond

Gold triggered a continuation of its bullish advance on Friday with a decisive breakout above 2,605, the high from Wednesday. It is on track to close strong, near the highs for the period. At the time of this writing gold hit a new record high of 2,626 and it continues to trade near the highs for the day. It looks like gold is well on its way to the next higher target zone that begins at 2,650 and goes to 2,661.

2,650 Starts the Next Price Zone

The next target zone is revealed by the confluence of several price levels. There are two recent ascending ABCD patterns that target 2,660 and 2,661. One pattern is shown in purple and the other is in orange. They provide the top boundary for the price range. The range begins at 2,650 with a long-term extended retracement of the decline that started from the March 2022 peak.

Bullish Reversal of Wednesday’s Poor Close

Following a false failed breakout signal on Wednesday, today’s advance confirms a reversal of the bearish implications from that day’s close. A bearish reversal candle was completed on Wednesday with a close in the lower third of the day’s trading range. Wednesday’s low provides the C point for a small rising ABCD pattern with its first target a little above 2,661 at 2,675.

Long-term Uptrend Well on Its Way

Gold broke out of a multi-year basing pattern in March, and it has been progressing higher since. It has established a series of higher monthly highs and higher monthly lows since the breakout. June was the exception as it was an inside month and therefore had a lower monthly high. This bullish behavior on the monthly chart and what might be expected following long-term bull breakout, a steady rising trend.

Acceleration in Momentum

Today’s advance into new record highs shows an acceleration in upward momentum as gold moves further away from the 20-Day MA (purple). This is also reflected by the higher rising slope of the internal uptrend line that has converged with the 20-Day line the past couple of days. In the bigger picture, a higher target for gold shows up around 2,724. There is a 447 point or 22.5% advance that began from the February swing low. The next upswing, that is measured from the June 26 swing lows matches that advance at 2,724.

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