Gold’s Upward Momentum Continues: Key Resistance Levels and Measured Move Target

Gold Forecast Video for 20.07.23 by Bruce Powers

Gold triggered a bullish trend continuation as it advanced to a new trend high on a move above 1,964. Today’s high of 1,984 was at the lower range of a resistance zone from 1,983 to 1,987, while the top of the range completes a 50% retracement. Also, an ABCD pattern extended by the golden ratio of 161.8% completed today at 1,971.

Prior Two Rallies Were Greater than 15%

The prior two rallies, starting off the September low, were 21.4% and 15.4%, respectively. As of today, the current rally has advanced as much as 4.8% as of today’s high. If we assume that the rally ends with gold up 15%, then gold would match that advance at 2,177. Today’s high of 1,984 hit a target at a prior swing high from June 2. Next, a daily close above that high will further confirm strength as this would violate the downtrend price structure.

New Measured Move Target

A measured move has been calculated off the July 6 low of 1,903 to last week’s high. That distance is then added to the pullback low of 1,946 to arrive at a measured move target of 2,007. That’s where the second leg up off the July 6 low matches the advance of the first leg up. Close by to that target is the 61.8% retracement at 2,010. Together, they create a resistance zone from 2,007 to 2,010.

Monthly Breakout Bullish

Also of significance is the monthly breakout that occurred today. Confirmation is still needed with a daily close above last month’s high of 1,983. Nevertheless, it did trigger and is supportive of higher prices for gold. The longer the time frame the more significant. So, a breakout on a monthly chart is more significant than on a daily or weekly. It is still possible for gold to close above that high today, but at the time of this writing it looks unlikely.

The last swing low is most likely the lowest price for gold that we will see for some time. Gold is on track to exceed prior historical highs and is off to a good start so far coming off the July 6 low.

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