Watching for Daily Close Above 2,035
Gold continues to trade below both the 2,131 target and the prior record high at 2,135. Therefore, it could easily close below those price levels. However, if it can close above 2,131 it will be showing greater strength than closing lower. And a close above 2,135 of course is a more bullish indication than a close below 2,135.
Higher Target is 2,189
In the short-term, gold may be extended and due for a retracement or consolidation of a day or a few, if not longer. Once that phase is done, whichever form it takes, gold should be ready to proceed towards the first major higher target zone around 2,189 to 2,194. The current sharp advance in gold began following a breakout of a large symmetrical triangle pattern. An initial target can be calculated from the pattern, and it points to 2,189. The purple arrows mark the related measurements.
Measured Moves Confirm Target
Further, two previous measured moves are highlighted in blue on the chart. They show impulse rallies coming up off the October swing low. The first rally is 11% and the second 10.5%. If the lower 10.5% advance occurs in the current advance, gold would be hitting approximately 2,094. The measure starts from the most recent swing low at 1,984 (C).
Highest Daily Closing Price Historically
Yesterday’s closing price of 2,114 was the highest daily closing price ever for gold, and today will likely end with a new record closing price. Gold has been setting up for large move into new record highs ever since reaching a high of 1,921 in 2,011. A multi-year basing pattern followed in the shape of a cup with handle. If this week’s advance is sustained and the price of gold further strengthens, gold will be rising out of a new floor in price.
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