Gold Price Forecast: Strong Bullish Momentum Pushes Gold to Record Territory

Gold continued its advance on Thursday and triggered a breakout to a new record high of 2,798, at the time of this writing. The prior record high was 2,790. Bullish momentum was strong as indicated by the day’s wide range green candle and a likely close for Thursday near the highs of the day. Currently, trading continues near the highs of the day and the high could be higher before the day ends.

Watching Momentum Indications from New High

Keep in mind that bullish momentum for the current upswing began from the 2,582-swing low in December. Now that a new record high has been reached, will the bullish signal of a new high be enough to sustain momentum or increase it towards higher price levels? Certainly, the first higher targets may not see difficulty being hit, but the impact from the breakout might be stronger if the move began closer to the breakout level.

First Higher Target is 2,823

There are four initial higher targets marked on the chart but only one that has supporting indicators pointing to a similar price. And it is the first target, which by itself improves the chance of it being reached. The first target is at 2,823. It includes the 127.2% extended target for a rising ABCD pattern and an extended target from a long-term ABCD pattern begun from October 2023.

Above the first target level are several other extended targets, including 2,856, 2,874, and 2,889. Moreover, there is a measured move that, on a percentage basis, completes around 2,820. The initial measure move measurement begins from a swing low of 1,160 reached in August 2018.

Near-term Support at 2,757

On the downside, a drop below today’s low of 2,757 increases the chance for a pullback lower before higher prices. A minor swing low at 2,731 is another key short-term level as a drop below it shows a likely deeper pullback. Key trend support is around the 20-Day MA, now at 2,709. Since the 20-Day line was most recently reclaimed in early-January, it has not been tested as support. That fact increases the chance of the 20-Day line being tested as support if short-term support levels are broken and lead to a pullback.

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