Gold Breaks Through Resistance to New Highs
Gold busted right through a potential resistance zone on Thursday, rallying to a new high of $4,928. Buyers remain in charge at writing, as trading remains near highs of the day. A fourth day of strong bullish price action puts gold in a position to finish the week confirming strength of the bull trend. If the four-day pattern of higher daily lows is sustained, the short-term trend is intact. That makes Thursday’s higher low of $4,772, key short-term support.
Next Target Zone Comes Into Focus
With a confirmed breakout above the top of the resistance at $4,891, gold is signaling its desire to rise to the next potential resistance zone from $4,993 to $5,000. Being a nice round number suggests extra attention. It is helpful that Wednesday’s high seemed to recognize the resistance zone from $4,876 to $4,891, as the high of the day was $4,888.
Momentum Accelerates Following Breakout
The beginning of the higher price target zone is related to the price zone that was just busted through, possibly giving it added credibility. Although targets are only estimates of where price could go, today’s sharp breakout and strong close increase the chance the next target may be reached before short-term momentum recedes. An acceleration in bullish momentum the followed the breakout of a rising trend channel recently suggests the gold could continue to advance at a rapid rate.
Measured Move Suggests Higher Upside Potential
There is a chance that a higher measured move target is reached. On a percentage basis the current advance – swing low to high – will match the prior upswing that began in August 2025, around $52.18. Price symmetry on a percentage basis between the two moves occurs at that price level. That identifies a potential resistance level. The measured move provides a guide, nothing more. But it is interesting to see how often symmetry occurs between swings in the same direction.
Key Support Levels to Watch on Pullbacks
A drop through Thursday’s low will show weakness that could lead to a test of support at the 10-day average, now at $4,671. And if it fails, the 20-day average shows the next price support zone. Of course, there are other levels but for simplicity, the two moving averages provide the more important information.
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