Gold Awaits Breakout Above $4,534
According to recent technical signals, gold may be entering an uptrend. If the price can rise above and stay above the 200-day moving average near $4,534, the long-term picture should improve. This would likely lead to a continuation of the current advance above last week's high of $4,697.
A potential rising ABCD pattern has formed on the spot gold daily chart, with an initial 100% projected target near $4,984. However, there are also two lower targets that become more likely: the 50% retracement of the prior full decline at $4,771 and the 61.8% Fibonacci retracement at $4,852.
Both of these areas are reinforced by a prior lower swing high, with the higher level showing greater significance given the series of lower swing highs in the prior downtrend.