Rise above 2,773 shows strength
Another increase above 2,765 that is followed by a progress above that would show the current strength. But a breakout above the High on Monday of 2,773 would indicate a greater confidence that the gold price may continue to strengthen. Of course, the recent peak of 2,786 would cause a continuation of the Bull-Trend in the short term with the record high at 2,790 a target. If that high is exceeded, there is a higher target around 2,823. There are two indicators that mark that price.
Firstly, it completes an extensive target of 261.8% for an increasing ABCD pattern that starts from the lows of October 2023. Furthermore, a more recent ABCD pattern (Purple) reaches 127.2% extended target. Then the next level was indicated that the resistance has risen at 2,856.
Monthly bullbreakout set to confirm
Because the month of January is almost complete, the monthly graph can be considered. An outbreak above the peak of December 2,726 activated this month and gold remains above it. Moreover, the High of November 2,762 also exceeded this month. Therefore, if January ends above that high, a bullish breakout is confirmed on the monthly period. That in itself gave a strong bullish signal as patterns in the time frame in the longer term in the long term, each month influence on the shorter time frames.
Under 2,731 could lead to a test of 20-day MA
Nevertheless, gold shows signs of resistance that can still lead to a pullback. An important level to pay attention to support in that case would be around the 20-day MA at 2,702. If that failed, the 50-day MA has fallen at 2,666. Note that a retracement up to the 50-day line would hold gold above the low point of this month 2,615. The integrity of the bullish monthly signals would remain valid in that case.
Look for a look in all the economic events of today Economic calendar.