Gold Price Forecast: Hits Record High, Eyes $3,043 Resistance Breakout

Gold ascended to a new record high of $3,038 on Tuesday. It continues to trade near the highs of the day at the time of this writing and could easily go higher before the end of the day’s trading session. Nonetheless, it is on track to close in a bullish position, near the highs of the day. A potential resistance zone was entered earlier in the day, but gold busted right through all potential resistance levels and is now challenging the top area of the price range that goes to $3,043.

If that price level is exceeded with conviction, gold will have a chance to reach the next higher target zone around $3,078. Notice that there is also a top trend channel line above current prices and on the way to the next potential resistance zone.

Strong Upward Momentum

Strong upward momentum was exhibited today by the relatively wide trading range and full green candlestick pattern. Buyers took control at the opening of the day’s session, and they remain in charge as the end of Tuesday’s session approaches. This doesn’t mean that gold will keep rising before a pullback, but it certainly could. As noted, a rise above today’s high will need to contend with potential resistance around the top of a previously identified price range at $3,043. If that high is not exceeded either a rest day that takes the form of an inside day could occur, or the beginning of a bearish pullback could begin.

Near-term Support at $2,999

A drop below today’s low of $2,999 would signal weakness and a likely deeper pullback to test support levels. Key potential support levels are at the prior high of $2,956, followed by the 20-Day MA at $2,931 along with a previous interim swing high at $2,930. Since two indicators are marking a similar potential support area, that area should be given added significance if it is approached.

Bullish on All Time Frames

Gold is bullish on all time frames and there is uncertainty in the global economic backdrop. Nonetheless, despite being overbought on the RSI gold could certainly go higher if additional bullish signals are triggered. Moreover, there is the possibility of an accelerated rally at some point given growing economic uncertainly. With that in mind, the top trend channel line noted above may provide added insight if it is approached.

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