Initial potential support levels
There are a few initial price levels to watch for possible support to emerge. The first is the April 12 swing high at 2,431. A little further down is the 38.2% Fib retracement at 2,411, followed by the 50% retracement at 2,389. The 2,389 price level is being given some weight as it also coincides with the previous intermediate swing high from June 7. A pullback to test this price range as support could be a good setup for a bullish continuation. It is above the 20-day and 50-day moving averages at 2,370 and 2,357, respectively, and is also above all trendlines.
Achieved long-term goal of 2,480
This week’s high of 2,484 completed a significant long-term objective for gold from a large ascending ABCD pattern at 2,480. The AB leg of the pattern began from the August 2018 swing low of 1,160. It led to a rise to the August 2020 swing high of 2,013. A similar price rise began from the September 2022 swing low of 1,615 and ended this week.
Potential pivot levels are identified when prices become symmetrical, and this appears to be the case given the bearish reaction that followed Wednesday’s high of 2,484. That said, after the bearish retracement is complete, gold is expected to continue its uptrend towards the upside target.
Recent bearish retracement points to a target of 2,495
There is a Fibonacci confluence near 2,487 and several price levels have been identified. Just above that is a relatively short-term target of 2,495. This price level completes a 127.2% extended retracement of the recent decline that began from the peak on May 20. A 127.2% retracement above 100% is completed at the 2,495 price level.
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