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Are you keeping an eye on gold and wondering where it’s headed next? Well, you’re not alone. Gold has been stuck in a tight consolidation pattern, trading between 2,471 and 2,532. This consolidation followed a bullish breakout a few weeks ago, which pushed gold to a new record high of 2,532. Despite the struggle, gold remains in a constructive pattern, hinting at a potential bullish continuation of the trend. As long as it stays above the symmetrical triangle pattern’s top line (marked in purple) and below the 2,532 high, the outlook remains positive.
Stay Alert for a Deeper Pullback
While the current pattern suggests a bullish trend, there’s always a risk of a deeper pullback. A drop below 2,471 would be the first sign of trouble, but keep an eye on the declining top line of the triangle pattern as well. This line might indicate a slightly lower price level than 2,471 once reached. If a downside break occurs, watch for potential support levels around 2,450 and 2,424 on a weekly basis.
Eyeing the Triangle Objective
Now, let’s talk about potential breakout levels. An upside move above 2,532 would signal a continuation of the long-term uptrend and a breakout of the triangle pattern. By measuring the triangle, we can identify a target of 2,605 after the breakout. Along the way, there’s an interim target of 2,566, which completes a long-term ABCD pattern. Keep an eye on how gold reacts around these levels to gauge potential resistance.
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