Gold Price Breakout Sets Sights on 200-Day Moving Average
The gold price has broken out above its prior high of $4,450 on the weekly chart, confirming Wednesday's upside move and adding to the growing bullish case for gold. This breakout will be confirmed if this week ends above last week's high of $4,450. The 200-day moving average is now in focus as a potential target, along with the top downtrend line.
The weekly chart shows a higher daily low of $4,324 established after the breakout, suggesting that gold may be on its way to reclaiming its lost ground. A simple measured move for the current advance projects an upside target near $4,791, which would put it above the 78.6% Fibonacci retracement of the recent decline at $4,689.
The momentum seen during the first leg up from the bottom is still strong, and this second leg up is beginning with signs of powerful momentum. The 200-day moving average presents the next key decision zone for gold as it continues to move upward.