Gold Prices Face Potential Retracement to Key Support Levels

The recent all-time high (ATH) of gold prices has been analyzed by a chartist who observed that it reached ~750% above the quarterly ascending support line, marked in teal. However, this level is significantly lower than the ATH hit around 800s, which could only be achieved if the US dollar collapses.

The chartist notes that the recent ATH only reached ~160% above a sharper support line, marked in lime green. This suggests that gold prices could potentially retrace to this line over the course of multiple months, resulting in a price drop as low as ~2500.

Upon breaking through several micro-levels on its way up to the ATH, the chartist predicts that gold prices could experience short-term bounces at these levels on its way down. However, it is still possible for gold to break through these levels over multiple months.

The identified support levels are ~3900, 3450, 3100, 2950, 2800, and then 2500. The chartist also points out that the level of ~2050 was a major support level, which is likely to hold up on initial attempts but may not withstand prolonged pressure.

Conversely, if the descending channel in blue turns out to be a massive bull flag, it could indicate that gold prices could potentially rise another ~2500 points from the breakout level within the next 2-3 months. However, this is considered an unlikely scenario unless central banks continue to aggressively print money.