Striking Gold: Charting the Path to New Highs and Targets

Gold Forecast Video for 28.12.23 by Bruce Powers

Gold triggers a bullish continuation as it breaks out from yesterday’s inside day and then triggers a new trend high above 2,071. It has since accelerated to the upside and is well on track to reach the next higher target zone around 2,091. Once reached, the initial target for a rising ABCD pattern (marked on chart) will be complete. Extended higher targets for the ABCD pattern include the 127.2% Fibonacci extension of the CD leg at 2,111, and the 161.8% extension at 2,137.

Daily Close Above 2,082 Confirms Strength

At the time of this writing, the high of the day is 2,084 and gold continues to trade near the top of the day’s range. During today’s advance the prior swing high and record high of 2,082 from May of this year was tested as resistance and looks to have stalled the ascent. However, a daily close above the 2,082-price level provides a clear signal to the 2,091-target price.

Recent Signs of Strength

Including today, gold has established a series of higher daily lows over seven days. This is a sign of strength initially seen on December 13, which completed a rising wide range green impulse candle. That is a sign that buyers are aggressively accumulating gold. Accumulation by institutional investors occurs over time. Although we’re not seeing such aggressive buying more recently, as noted above, we are seeing signs that buyers are dominating price action.

If a Pullback Comes the 20-Day MA Should be Support

Regardless of the potential for reaching the next higher target at 2,091, in the near term a pullback could come first. This is especially true given the signs of resistance seen following today’s high. A drop below today’s low of 2,061 points to a likely pullback. If a retracement from today’s high does occur the short and intermediate moving average lines is where support would be expected to be found. The first is the 20-Day MA, which currently resides at 2,032, while the 50-Day MA is near the internal uptrend line at 2,001. Note that the 50-Day line has converged with the trend line, highlighting that price area as a more significant dynamic support zone.

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