Gold Price Breaks Out Above $4,382, Targets $4,500

The gold price has broken out of its previous range, but it's not out of the woods yet. The spot gold daily chart shows an initial bullish reversal signal above a lower swing high at $4,382.

A new higher daily low of $4,357 is now key near-term support, and a drop below it could lead to a deeper pullback. However, the trend still looks likely to continue after a period of consolidation or correction.

Since bullish momentum began following a declining trendline breakout last Wednesday, gold has advanced by approximately 8.0% from last Wednesday's low to Tuesday's high. Some degree of correction could be healthy for the advance before gold is ready to proceed higher.