Breaks Previous High, What’s Next?

Gold Forecast Video for 31.10.23 by Bruce Powers

Gold followed through to the upside today, exceeding the previous trend high of 1,997 and rallying to a high of 2,008.5 at the time of this writing. Trading continues to occur near the highs of the day as strength returns. Today’s advance has been decisive, generating a wide range green candle reflecting solid upward momentum and mimicking strong days seen just prior to the recent approximately five days of consolidation. This is what we would expect to see from gold if it was going to continue its rally off the recent swing low.

Advance To Date is 11.0%

The advance to date off the recent swing low has seen gold rise by as much as 11.0% in fifteen days as of today’s high. If momentum can be maintained it is on track to reach the next resistance zone, possibly by next week. It is anchored by the 78.6% Fibonacci retracement at 2,024 and goes up to around 2,036. Included within the range is the prior record high of 2,031 from August 2020. We’ll have to wait and see but that seems to be a logical area to see a pause or retracement as gold prepares to attack prior highs.

Bullish on All Time Frames

In the long-term gold is bullish and in the short term as well. The long-term patterns support activity in the short term, and they are now aligned. This should help expand the pool of buyers as they get more aggressive to make sure they are in before a new record high. The monthly chart in gold recently reached a five-month high and gold is set to end the month at a record high monthly close.

An Initial New High Target is 2,097

There are higher targets but if we draw a Fibonacci retracement of the recent decline that began from the most recent record high of 2,053 from early-May we can look at the extensions, or greater than 100% retracements. They mark potential higher targets, assuming a new high breakout occurs. The 161.8% Fibonacci extension is at 2,097, and it is followed by the 200% extension at 2,164.

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