Gold Price Forecast: Unprecedented Highs and the Looming Pullback Risks
Gold Price Hits Record Levels
Gold reached an astonishing record high of 2,671 on Wednesday, coming close to its highest daily closing price ever. Currently trading slightly above Tuesday’s close of 2,657, it's essential to note the potential resistance zone between 2,650 and 2,660. Additionally, a slightly higher target of 2,675 could indicate a pivotal moment for traders.
Potential Resistance and Market Dynamics
- Two rising ABCD patterns have reached targets at 2,660.
- This area marks a likely pivot level where resistance might trigger a pullback or signal an upside breakout—either outcome could impact future trends.
- Gold has been on an upswing for five consecutive days, approaching the overbought territory on the relative strength index (RSI).
- If today's low of 2,650 is breached, the likelihood of a pullback increases.
Key Support Levels to Watch
Should a pullback occur, the 20-Day MA at 2,553 will be a crucial support area. This moving average has proven resilient since the breakout above it on August 9.
- Other support levels to monitor include:
- This week’s low of 2,614.
- Prior trend high of 2,600.
- A rising short internal trendline above the 20-Day MA.
Potential Upside Beyond Resistance
If the trend surpasses the 2,675 marker, gold may aim for the next target zone at 2,724. This level corresponds with a larger ascending ABCD pattern originating from the significant February swing low.
Notably, the long-term base breakout from March suggests that gold's uptrend could continue increasing in value.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.