Gold Hits New Record High: Key Price Levels Investors Need to Monitor
35 minutes ago
The price of gold (XAUUSD) surged to an all-time high Tuesday and continued to gain ground on Wednesday, amid renewed tariff uncertainty and expectations that the Federal Reserve will cut interest rates soon.
Spot gold was up 0.6% at $3,555 an ounce on Wednesday morning. The precious metal has gained about 35% since the start of the year, supported by central bank buying, tensions in the Middle East, and economic uncertainty.
Below, we take a closer look at gold’s chart and use technical analysis to point out key price levels worth watching.
Gold’s price consolidated within a five-month symmetrical triangle before breaking out from the pattern on Friday, potentially laying the groundwork for a continuation higher.
While the relative strength index moves toward overbought levels to signal strong price momentum, the indicator remains below 75, a reading that has coincided with minor retracements in the commodity after strong trending periods.
Importantly, increasing trading volume has accompanied recent buying, indicating heightened investor interest.
Let’s identify a bullish price target to watch if gold prices continue their push higher and also point out important support levels worth monitoring during future pullbacks.
Investors can forecast a bullish target using the measured move technique, a study that analyzes chart patterns to project future price movements.
When applying the analysis to gold’s chart, we calculate the distance of the symmetrical triangle near its widest point and add that amount to the pattern’s top trendline. For instance, adding $500 to Friday’s close around $3,430 projects a bullish target of $3,930, about 11% above gold’s current trading levels.
During retracements, investors should initially monitor the $3,430 level. This location may provide support near Friday’s breakout point, which also closely aligns with several peaks on the chart stretching back to April.
Finally, bullion bulls’ inability to successfully defend this level could see gold revisit lower support around $3,150. The precious metal may attract buying interest in this region near the early April high and May swing low.
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