Gold Surges to as the Bulls Gain Control

Gold Forecast Video for 16.10.23 by Bruce Powers

Gold takes off today as it continues its rising trend with renewed enthusiasm. Several potential resistance zones were busted through with little hesitation, including the not insignificant 200-Day EMA at 1,904. At the time of this writing, gold has reached a potential resistance zone around the downtrend line. The high of the day currently is 1,931 and gold continues to trade near the highs of the day. Therefore, it may be higher by the close.

Daily Close Above Downtrend Will Confirm Strength

A daily close above the downtrend line will provide a new sign of strength and further encourage the bulls. In addition to being set to close strong for the weak, near the highs of the week’s range, gold is on track to close at a three-week high if it can stay above 1,927. Further, today’s rally exceeded the 61.8% retracement of the internal downswing. The next higher Fibonacci retracement of 78.6% occurs at 1,950 and strengthens the significance of a monthly price target zone.

Last Month’s High is Targeted at 1,953

Last month’s high was 1,953. It is a key target for gold during its ascent and a decisive breakout above that level will provide a bullish signal on the monthly time frame. That high zone can be seen on the daily chart, and it is accompanied by a couple Fibonacci levels. Once broken to the upside, gold is ready to attack its record high of 2,082 and then progress higher.

New Record Highs May be Possible

One simple yet valid initial new high target can be derived by looking at the 127.2% extension of the Fibonacci retracement measurement of the recent downtrend that began from the 2,072-record high in May. It comes in at 2,156. Lower price zones that may provide some resistance on the way up are highlighted on the chart with Fibonacci confluence. Following an advance above the September monthly high gold heads next to a price zone from around 1,978 to 1,985, which includes a prior swing high and monthly high from July.

As we see today, once gold turns it can run fast. Today’s sharp advance may be a preview of coming attractions as far as momentum. A breakout to a new record high will be significant for gold. Since last week’s bottom is likely the bottom before new record highs, demand will likely further increase as gold’s rally makes further upward progress.

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