On the way to 2,772
The next higher target from chart analysis appears to be around 2,772. That is the initial goal of a rising ABCD pattern (purple). At that price, the two increases in the pattern would match and generate a potential pivot. There could be a pullback or a breakout through that price zone if buyers continue to hold the lead. Note the acceleration of momentum as the upside angle for the short-term uptrend increases, along with today’s wide-range green candle.
This reflects improving demand that may continue to improve. That could lead to an acceleration of the advance as market participants enter following the bullish reversal signal above a previous swing high.
Above record highs to 2,846
If gold can get and stay above the all-time high of 2,790, it will head towards a target zone at 2,846, which is the 127.2% extended target for a bullish ABCD pattern starting from the February 2024 low at 1,984. It is quickly followed by the extended 227.2% target at 2,874 for a rising ABCD pattern that started from the September 2022 low. It is also worth looking at the rising trendline that marks the August swing low with connects each other. In combination with other indicators it can help provide direction when approached.
Monthly bullish reversal triggered
Finally, today’s bull breakout caused a monthly reversal as it breached last month’s high of 2,726. December was an indoor month. With the longer time frame taking precedence, a bull trend continuation signal was generated today, increasing the chances of gold reaching new all-time highs.
For a look at all of today’s economic events, check out our economic calendar.