Rise above Friday’s high of 2,518 proves strength
A rise above today’s high of 2,518 would generate a bullish signal and set the stage for a rally to a new record high. Gold hit a new record high of 2,532 last week. This rally could signal a continuation of gold’s long-term uptrend if it rises above this record high.
Gold is positioned to continue its upward climb since the bullish breakout of a symmetrical triangle consolidation pattern last week. Gold is breaking out of an ascending consolidation pattern that has been forming since April’s swing high of 2,431. Note the sharp rise before the consolidation phase. Gold is expected to see a similar uptrend as it gains momentum and starts to clear the triangle pattern.
First climb target is 2,543
Gold’s next upside objective is near 2,543, where an ascending ABCD pattern (purple) is completed. This price level is very close to the current high of 2,532 and could easily be surpassed. The next objective is a longer-term ascending ABCD pattern objective where the CD leg of the ascent is extended 161.8% of the AB leg of the pattern.
The measurement begins from the swing low of September 2022. After that, there is a price range of 2,595 to 2,605, which is derived from the targets measuring the 127.2% extended ABCD target from a smaller ascending ABCD pattern and the formation of a symmetrical triangle, respectively.
Support of 2,471 needs to be maintained
Of course, surprises happen and a deeper retracement could occur before a breakout to a new high. For example, if yesterday’s low of 2,471 does not hold as support, gold could fall to at least the 20-day moving average of 2,452 before finding support.
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