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The next higher target for gold is at $3,079, defined by the confluence of several Fibonacci levels. And it certainly can keep rising given today\u2019s trend continuation signal. Following that price zone there is an early 78.6% target for the CD leg of a rising ABCD pattern at $3,125. Otherwise, watch the area around the rising trend channel line as it may mark a resistance area. After that the next confluence zone is around $3,148 and $3,154.<\/p>\n
Gold\u2019s behavior around the lower top trend channel line should be telling as it represents the top of a large ascending parallel trend channel from a low in October 2023. The larger the pattern, the more significant the price level may be. There is also a shorter and current trend channel on the chart highlighted in green. The top line from that channel is higher than the larger channel line. Notice that the $3,125 price level could be reached even if resistance was seen at the initial channel line. It will depend on how the angle of ascent for the advance.<\/p>\n
Regardless of the above bullish signs, a daily close above $3,057 is needed to confirm the breakout. Gold would need to fall below today\u2019s low of $3,018 before giving a bearish signal. The 20-Day MA marks a key trend support area and will continue to do so if gold continues higher. Despite the possibility that the price is getting more extended, a projection from the closest ABCD pattern (not shown) has an initial target at $3,177.<\/p>\n