Gold’s Bullish Run: Potential for Record Highs on the Horizon

Gold Forecast Video for 20.10.23 by Bruce Powers

Gold accelerated its upward move on Thursday, breaking above resistance at 1,960 and rising. It is on track to reach the next higher resistance zone from around 1,985 to 2,001 as upward momentum accelerates. At the time of this writing gold is trading at highs for the day reflecting persistent strong demand.

Measured Move Target Completes at 1,993

The initial primary target for the current rally is 1,993 as that is the completion of a measured move. It is supported by a prior swing high and Fibonacci levels to create the price range. With the measured move we’re looking for a performance match with previous aggressive rallies in gold. Specifically, there were two sharp rallies in gold following the November 2002 lows, which began the current long-term uptrend.

The two rallies are highlighted on the chart and include the eight-day advance starting from the November 3, 2022, swing low, and the eight-day rally beginning off the March 8, 2023, swing low. The first advance was for 10.5% and the second, 11.1%. Notice that each rally occurred over eight days. Certainly, gold can continue higher once reaching 1,993. It is a potential pivot like any.

Rally is Strong and Getting Stronger

The current rally is taking a little longer as gold has been up as much as 9.2% in nine days. And the target is not yet hit. This points to the possibility of a continuation of aggressive buying as we’re seeing today. Yesterday gold triggered a bullish breakout on the monthly chart (not show) for September. It has since also reached a three-month high as a bullish breakout of August has also triggered. The patterns and price behavior in the monthly chart informs the shorter time frames.

Monthly Breakout Supports Eventual New Highs in Gold

A monthly breakout makes the possibility of an eventual breakout to new record highs in gold more a reality. Keep this in mind when trading the daily or weekly time frames. As gold keeps rising it keeps showing its strength and how demand is improving. Global geopolitics probably plays a part, but the technical price patterns are calling for higher prices in gold.

For a look at all of today’s economic events, check out our economic calendar.