Open account
☰
Open account
✖

Gold Price Forecast: Gold Breakout Takes Out 2700 - 2721 Next Res

Article By: ,  Sr. Strategist
Today 4:12 PM

Gold Talking Points:

 

It’s been a strong week for gold prices, which stands in contrast to the prior week-and-a-half when prices held within a consistent range, with support at 2617-2621 and resistance at 2643-2650 and 2660-2666.

I looked into the range at last week’s webinar when gold was grinding in the 2643-2650 zone; and a support test showed up two days later at 2617-2621. As the weekly bar closed price remained within that range, but it was around this week’s open when bulls started to stretch it, driving a Monday rally to the next point of resistance at 2675. That held the highs for a brief pullback but at that point, support showed at prior resistance, spanning from the 2660-2666 zone and that held as a higher-low, leading to another breakout.

When I looked at gold in yesterday’s webinar it was already close to the 2700 level, and as I shared then, bulls were exhibiting firm control of the move. There was support potential at prior resistance levels of both 2675 and 2685. The first test of 2700 led to a pullback but buyers held it above 2675, setting the stage for a second test which is taking place right now.

The next key zone overhead for bulls to encounter on continuation pushes is the same that held the highs in late-November, from 2717-2721. The 2717 level is the 14.4% retracement of the same major move that set the lows last month at the 50% mark; and 2721 is the swing high from that move. Collectively the two prices create a zone $100 above last week’s support of 2617-2621.

 

Gold Four-Hour Price Chart

Chart prepared by James Stanley; data derived from Tradingview

 

Gold Bigger Picture

 

It was a strong run for gold in 2024 and that started to come into question after the election-fueled pullback. But this week’s strength is encouraging for gold bulls and this shows a clear sign of re-claiming control following the support exhibited on the past two weekly candles.

But, this also sets the stage for a key test at that 2717 Fibonacci level and that’s a price that buyers would want to see a weekly bar close above, as opposed to an upper wick indicating resistance response that could spell further consolidation.

Above 2717, it’s the 2750 level that buyers stumbled at in October and the 2800 level was left completely un-tested in spot, as the high printed about $10 inside of that big figure.

 

Gold Weekly Chart

Chart prepared by James Stanley; data derived from Tradingview

 

 

--- written by James Stanley, Senior Strategist

 

Gold Talking Points:

 

It’s been a strong week for gold prices, which stands in contrast to the prior week-and-a-half when prices held within a consistent range, with support at 2617-2621 and resistance at 2643-2650 and 2660-2666.

I looked into the range at last week’s webinar when gold was grinding in the 2643-2650 zone; and a support test showed up two days later at 2617-2621. As the weekly bar closed price remained within that range, but it was around this week’s open when bulls started to stretch it, driving a Monday rally to the next point of resistance at 2675. That held the highs for a brief pullback but at that point, support showed at prior resistance, spanning from the 2660-2666 zone and that held as a higher-low, leading to another breakout.

When I looked at gold in yesterday’s webinar it was already close to the 2700 level, and as I shared then, bulls were exhibiting firm control of the move. There was support potential at prior resistance levels of both 2675 and 2685. The first test of 2700 led to a pullback but buyers held it above 2675, setting the stage for a second test which is taking place right now.

The next key zone overhead for bulls to encounter on continuation pushes is the same that held the highs in late-November, from 2717-2721. The 2717 level is the 14.4% retracement of the same major move that set the lows last month at the 50% mark; and 2721 is the swing high from that move. Collectively the two prices create a zone $100 above last week’s support of 2617-2621.

 

Gold Four-Hour Price Chart

Chart prepared by James Stanley; data derived from Tradingview

 

Gold Bigger Picture

 

It was a strong run for gold in 2024 and that started to come into question after the election-fueled pullback. But this week’s strength is encouraging for gold bulls and this shows a clear sign of re-claiming control following the support exhibited on the past two weekly candles.

But, this also sets the stage for a key test at that 2717 Fibonacci level and that’s a price that buyers would want to see a weekly bar close above, as opposed to an upper wick indicating resistance response that could spell further consolidation.

Above 2717, it’s the 2750 level that buyers stumbled at in October and the 2800 level was left completely un-tested in spot, as the high printed about $10 inside of that big figure.

 

Gold Weekly Chart

Chart prepared by James Stanley; data derived from Tradingview

 

 

--- written by James Stanley, Senior Strategist

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

© City Index 2024