[ad_1]
\n<\/p>\n
Today\u2019s advance broke through a resistance zone that stopped Monday\u2019s rise thereby putting the next higher price targets on notice. That would be at the $2,556 price zone identified by the 127.2% retracement of the most recent large decline that followed the October peak at $2,790. However, there is also a potential resistance level identified around today\u2019s high. Notice on the chart that a prior support trendline was tested today as resistance.<\/p>\n
It has not yet been broken and could continue to be an area of resistance. Since the next higher target is relatively close by, it also wouldn\u2019t be surprising to see a breakout above the line. Moreover, the price of gold could continue higher while still recognizing the line as resistance. Above $2,556 is Having said that trendlines help provide context and clues as to strength or weakness, but they are just that.<\/p>\n
Gold is in a long-term bull market that continues to show signs of strength and develop in a relatively orderly manner. The current leg of the advance really got going following a breakout of consolidation in late February 2024. Since then, the 100-Day MA (not shown) has done a good job of marking dynamic support for the trend. As of late-January it started to angle up again following a period of angling down. This bullish thesis is what retains demand during retracements. But financial assets don\u2019t rise in a straight line nor in a way that makes it easy to feel comfortable, as advances are followed by retracement and consolidation.<\/p>\n
Last week gold broke out to a new trend high as it rallied above $2,790. That price area becomes a potential support zone during retracement. If today\u2019s low of $2,807 is busted to the downside, then the pullback may have begun. This week\u2019s low of $2,772 is also a potential support level, along with the 20-Day MA at $2,735.<\/p>\n
For a look at all of today\u2019s economic events, check out our\u00a0economic calendar<\/a>.<\/b><\/p>\n<\/div>\n