Gold Price Forecast: Surges to Six-Week High, Targets New Records

Gold followed through on the upside Friday with a new high of 2,393, at the time of this writing. It continues to show strength as trading continues near the highs of the day. Bullish sentiment improved as gold reached a six-week high and is on track to close above that 2,388 price level.

Nevertheless, it is on track to end Friday’s session at a seven-week weekly closing high. There were only two previous weeks that ended higher. The closest was at 2,392 during the week of April 15. Since the session has not yet ended, it is still possible that Friday’s may end with only one week having a higher weekly close.

Strong Upward Momentum

Given this week’s strong bullish price action, following a choppy five weeks, gold is sitting in a bullish position to challenge the most recent trend high of 2,450. Whether it does so quickly or not remains to be seen. It is off to a good start so far. Not only can bullish developments be seen on both the daily and weekly charts, but the monthly period is also supportive of a bullish continuation of the trend. June’s high was 2,388, and as noted above, it was busted through today. Subsequently, if gold ends today above 2,388, a monthly bullish signal will have been confirmed.

Monthly Bull Breakout Triggered

Monthly patterns provide stronger signals. Gold is now aligned with bullish indications on each time frame. The daily, weekly, and monthly charts are all bullish. This alignment should increase the chance for gold to encounter the 2,450-record high and it will likely break out above it. Gold is coming up fast and it may keep rising with strong momentum. Potential new record high targets start with 2,462, followed by 2,480. However, there is a cluster of multiple Fibonacci targets beginning around 2,488. A 127.2% Fibonacci extension of the most recent bearish retracement completes at 2,494.

Remains in Consolidation Zone

Regardless of the above bullish indications, gold remains within a consolidation pattern. It could therefore continue to experience choppy price action for a while longer. However, so far, given the strong upward momentum exhibited this week, it may not give the bulls a chance to participate without aggressive action as it sharply heads towards highs.

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