Gold’s Bullish Surge: Resilience in the Face of Potential Resistance

Gold Forecast Video for 17.11.23 by Bruce Powers

Gold bursts higher today before finding at least temporary resistance at 1,988 and then stalling. The high is a match with an obvious price area to see resistance, the swing high from July 20. However, today’s strong momentum move negates Wednesday’s weak close, reversing a potential bearish continuation. Some of the strongest moves come from failed patterns.

Today’s advance continues to show strength as we get later into the session. The pullback from the high has been minimal so far and the day’s range is healthy, extending beyond the rally seen on Tuesday. A strong close shows sustained demand that may continue to push prices higher in the near term.

Can Strength Be Sustained?

Nevertheless, gold will need to further sustain its strength as it starts to encounter a potential resistance zone starting from today’s high and going up to the current trend high of 2,009. Whether it advances above 2,009 soon or following some consolidation or a minor pullback, the structure of the developing uptrend says it is likely going above it within a week or two at the latest. That’s what price action seems to be saying now. Of course, that will change if bearish signs start to show. Specifically, if gold falls below the 50-Day EMA, which is the area of support from the most recent swing low, it is going to take longer to see the advance from the October swing low continue.

Divergence of Moving Averages Just Beginning

We can see clues of overall strengthening in the price of gold when looking at the relationship between the 50-Day EMA and the 200-Day EMA. As the trend improves the distance between the two lines will expand. That expansion is still in its infancy, providing optimism for further strength in prices.

Weekly and Monthly Price Levels

On the weekly chart there is a price level to be aware of that is within the price zone mentioned above. Last week’s high was resistance and it is at 1,993. Therefore, it may be resistance again or a clear breakout above it shows strength. Also, to consider, the 2,009-swing high is also the monthly high for October. Subsequently a breakout above the high will trigger a breakout on the monthly chart thereby providing further evidence of increasing demand.

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