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Gold Price Forecast: Surges to New Highs, Targets 2,462 Next

By:
Bruce Powers
Published: May 17, 2024, 20:37 GMT+00:00

Gold rallies to new high of 2,419, targeting 2,462 as strong bullish momentum pushes towards record weekly closing price.

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Gold continued its rally today with a new swing high of 2,419. Momentum was strong indicated by the wide range day and full green candle. A top trend channel line and the 78.6% Fibonacci retracement were exceeded during today’s advance. Gold is set to close strong, near the top of this week’s trading range. Nevertheless, baring an extreme move before the close, it should end at its highest ever weekly closing price. That bodes well for future prices and alludes to a continuation higher and a possible breakout to new record highs.

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Gold Targets 2,462 if 2,431 is Exceeded

The recent record high in gold was 2,431. If exceeded to the upside gold looks to be heading towards 2,462. That price area is the confluence of two Fibonacci levels. One is an extended retracement of the September 2011 decline, and the other is the 127.2% extended retracement from the recent pullback off the 2,431-record high. Since they line up and represent both a long-term price projection and a short-term level, it should be watched closely for signs of resistance. Regardless, demand could remain strong and push prices right through that zone. Whatever the reaction around that price level, it is a potential pivot to be watched.

Further Up is 2,480

That price target is followed by a slightly higher target at 2,480, which is the completion of a measured move. Gold rallied by 870 points from the August 2018 swing low of 1,160. The current advance, when measured from September 2022 trend swing low at 1,615, will be up by 870 when the price of gold is at 2,485. That is a target. After that there are a variety of possible interim targets if the bull trend in gold continues to advance, and it looks like it will.

Strong Follow Through from March Breakout

As discussed previously, gold successfully broke out of a multi-year basing period in March of this year. The subsequent follow-through has been bullish as momentum has stayed strong and retracements or consolidation periods have been minor. For example, the recent retracement found support and reversed higher with less than a 38.2% Fibonacci retracement being completed. This reflects demand from buyers. It has stayed strong.

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About the Author

Bruce boasts over 20 years in financial markets, holding senior roles such as Head of Trading Strategy at Relentless 13 Capital and Corporate Advisor at Chronos Futures. A CMT® charter holder and MBA in Finance, he's a renowned analyst and media figure, appearing on 150+ TV business shows.

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