Gold Bulls Eye Higher Target Amid Key Resistance Test

The gold price has been on an upward trend, with its daily chart showing a larger trend structure. The 100-day moving average is now presenting key resistance that could lead to a pullback or consolidation in the near term.

However, the next higher target for gold is defined by the 200-day moving average, which is currently near $4,496 and represents a significant resistance zone given its long-term timeframe.

The path towards this higher target may depend on how gold responds to initial resistance near $4,392. A recovery above the trendline last Friday confirmed that the bull case for gold has strengthened.

This bullish technical evidence comes after recent reclaim of the 20-day and 50-day moving averages, a breakout above a downtrend line, and a trend reversal signal on a move above the lower swing high at $4,203. The next test for gold is whether buyers can push through the key resistance zone of $4,382-$4,392 without a meaningful pullback.