Gold Price Forecast: Assessing the Bull Flag Breakout and its Potential Upside
Gold Price Forecast: Current Market Analysis
Gold prices continued to strengthen, further confirming the bull flag breakout. During Wednesday's trading session, a high of 2,685.37 was recorded, nearing the resistance level of 2,685.56 from late-September. Currently, however, gold is at risk of closing weak below the mid-point of today’s trading range, specifically at 2,672.
Key Near-term Support at Today's Low
A decline below today's low of 2,659 could lead to critical support testing around the top flag trendline or the 20-Day MA near 2,645. If the 20-Day line fails to hold, deeper retracements may be anticipated. Observing price behavior near this line will be crucial as it serves as a potential support level.
Weekly Breakout Support Rally
It’s also pertinent to note that last week’s low of 2,638 offers important support; falling below this could trigger a bearish reversal. However, a breakout past last week's high of 2,661 indicates potential for a bullish reversal. The previous week exhibited a bullish hammer candlestick pattern, reinforcing optimism in the gold market.
Rally Above Today's High Triggers Upside Continuation
A decisive rally above today’s high could result in a new high in gold, suggesting continuation of the bullish trend. Projections from the bull flag formation suggest price targets could reach a Fibonacci confluence zone between 2,724 and 2,754. While achieving the indicated target of 2,815 may take time, it denotes possible upside for gold prices in the future. Lastly, stay tuned to our economic calendar for an update on all significant economic events.
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.