2,650 Start the next price zone
The next target zone is revealed by the confluence of different price levels. There are two recent bullish ABCD patterns targeting 2,660 and 2,661. One pattern is shown in purple and the other is shown in orange. They form the upper limit for the price range. The range starts at 2,650, with a long retracement of the decline that started from the March 2022 peak.
Bullish reversal from Wednesday’s bad close
After a false failed breakout signal on Wednesday, today’s advance confirms a reversal of bearish implications from the day’s close. On Wednesday, a bearish reversal candle concluded with a close in the lower third of the day’s trading range. Wednesday’s low provides the C point for a small bullish ABCD pattern, with the first target just above 2,661 at 2,675.
Long-term upward trend well underway
Gold broke out of a multi-year base pattern in March and has been climbing higher ever since. Since the breakout, it has hit a series of higher monthly highs and higher monthly lows. June was the exception because it was an inside month and therefore had a lower monthly high. This bullish behavior on the monthly chart and what might be expected after a long-term bull breakout constitutes a steadily rising trend.
Acceleration in momentum
Today’s advance to new all-time highs shows an acceleration in upside momentum as gold moves further away from the 20-day MA (purple). This is also reflected by the higher rising slope of the internal uptrend line that has converged with the 20-day line in recent days. In the bigger picture, a higher target for gold appears around 2,724. There is an increase of 447 points or 22.5% starting from the February low. The next upswing, measured from the June 26 swing lows matches, rises to 2,724.
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