Gold Forecast Video for 29.12.23 by Bruce Powers
Gold rises to a new trend low today before hitting resistance at 2,088 and backing off. It is set to end Thursday with a higher daily high and daily low but may close near lows of the day, a sign of short-term weakness. Subsequently, a decline below today’s low of 2,066 could signal the beginning of a retracement that began intraday following today’s high.
ABCD Pattern Target at 2,091 Reached; Bearish Reaction Followed
day’s high was close to hitting the 2,091 target that completes a rising ABCD pattern. The price rise in the two legs of the pattern, AB, and CD, are the same at that target. Given the bearish reaction following today’s high we can anticipate that the initial ABCD target has been reached unless there is an advance above today’s high within a few days and before price declines below the two-day low of 2,061.
Potential Pullback Targets at 2,048 and 38.2% Fibonacci at 2,044
If a continuation of the pullback is triggered on a drop below today’s low the first likely target looks to be around previous resistance at 2,048 (B) and the 38.2% Fibonacci retracement level at 2,044. Further down is the confluence of the 20-Day MA at 2,033 and the 50% retracement at 2,031. The bullish case for gold remains stronger if support is seen around the 50% retracement, at the lowest.
Weekly Support at 2,053
Also, for consideration is support at this week’s low of 2,053. A drop below it after this week will disrupt the weekly uptrend begun from the most recent swing low on December 13. Nevertheless, on the daily chart gold has been showing sign of strengthening as the 20-Day MA has recently successfully been tested as support for this first time since the trendline breakout triggered on October 18.
Eventual Rise to New Highs Anticipated
Gold looks to be getting ready to rise to a new record high, which may be sustained this time after several failed attempts over the past year. Each time a new high was reached it quickly encountered resistance leading to a correction. The latest attempt was earlier this month when a new high of 2,135 was reached.
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