Gold Breakout Opens Path Toward $4,891 as Support Holds Key
Gold prices have broken out of their previous resistance level, opening up the possibility for further gains.
The spot gold daily chart shows a larger trend structure, with multiple upside targets emerging as gold approaches its April high.
The first target zone is between $4,654 and $4,689, which represents both a measured move projection from the pennant pattern and the 50% retracement of a prior decline.
However, a standard-measure objective for a bull pennant suggests a potential upside target closer to $4,780, which is supported by resistance at the 50% retracement of a larger downswing near $4,771.
The nearby lower swing high at $4,774 also marks a prior price reference.
Key support for gold's continuation lies in its 200-day moving average, currently at $4,516, and Friday's higher daily low of $4,509.
If this support holds, it could help preserve the breakout and keep the higher targets in play, potentially reasserting gold's long-term bull trend.