Gold’s Resilience: Multi-Timeframe Bullish Signals Hint at Upside

Gold Forecast Video for 27.12.23 by Bruce Powers

Gold consolidates on Tuesday, trading inside day, as it sets up for a continuation higher. An advance above today’s high of 2,065 triggers a breakout of the inside day, signaling strength and the potential to trigger a continuation signal on a move above last week’s high of 2,071. The completion of a rising ABCD pattern is then targeted at 2,091 (D).

Monthly Bullish Signal Points to Higher Prices

A bullish continuation signal occurred in December on the monthly chart as gold advanced above November’s high of 2,052. Strength was confirmed on subsequent daily and weekly closes above that monthly high. In addition, gold is set to complete December above November’s high, which will confirm strength on the monthly chart. A monthly close for December, above the halfway point of the month’s range, will be a stronger indication for gold rather than a monthly close below the halfway point. The halfway point for December’s trading range is at 2,054, below where it is currently trading, around 2,063.

Weekly Bullish Signal as Well

Moreover, there are also recent bullish signals in the weekly time frame following the retracement bottom at 1,973 (A). A bullish reversal triggered last week on a move above the prior weekly high at 2,048. Strength was subsequently confirmed on last week’s close above that high.

Bullish on Multiple Time Frames

In summary, gold is showing bullish signs on multiple time frames. The monthly, weekly, and daily charts are all bullish and each recently confirmed the completion of a correction, followed by signs of strength. Typically, this type of price behavior leads to a continuation to the upside. How gold goes about reaching higher prices is where there is a question. Does it reach the initial target (D) prior to a pullback of note? Or does it pullback first, test support levels, and then turn higher? We’ll be watching for either scenario.

Short term Weakness May Test Support at 20-Day MA

A pullback lower soon could easily see gold test support around the 20-Day MA, currently at 2,030. The 20-Day line acted as support over several days the past two weeks, ending with price rising. If it is approached again, support should be seen at or above the line for the near-term bullish outlook in gold to be maintained.