Watch These Important Gold Price Levels As Metal Hits Record High

Gold (GOLD) prices climbed to group a caller grounds precocious connected Tuesday arsenic investors move into nan precious metallic amid rising expectations that nan Federal Reserve will lower its benchmark liking rate successful September. Falling rates summation nan non-yielding commodity’s request by reducing its opportunity holding costs comparative to liking base assets, specified arsenic fixed-income securities.

Below, we zoom retired connected gold’s play floor plan to place important technical levels to watch retired for arsenic nan commodity continues to glitter.

Breakout from Rectangle Pattern

Gold has trended sharply higher aft breaking retired supra multi-year resistance astir $2,000 successful November past year. More recently, nan precious metal’s value has consolidated wrong a constrictive rectangle since early April, a floor plan shape that indicates a continuation of nan existent uptrend.

This week’s breakout supra nan rectangle suggests nan commodity’s adjacent move higher whitethorn person resumed. It’s besides worthy pointing retired that nan relative spot scale (RSI) has moved into overbought territory, which confirms beardown value momentum, but besides increases nan probability for short-term pullbacks.

Watch This Key Level if Bull Run Continues

To gauge wherever nan value of golden whitethorn beryllium headed next, we tin usage a bars shape that takes nan trending value action betwixt February and April and use it to nan rectangle’s breakout point.

This method projects a price target astir $2,950, an area connected nan floor plan wherever bullion bulls whitethorn besides beryllium happy to book profits aft 2 chopped trending legs higher.

Monitor These Important Pullback Levels

Amid periods of profit-taking, location are 3 important floor plan levels that whitethorn travel into play during retracements.

The first area to watch sits astatine $2,190, aliases astir 12% beneath nan existent price, a location that whitethorn pull buying liking adjacent a short region successful nan commodity’s impulsive move higher betwixt February and April.

A breakdown beneath nan level outlined supra could spot nan value diminution to astir $2,090, wherever it would apt brushwood support from a scope of bars pursuing gold’s late-November breakout.

Finally, a deeper sell-off could lead to a retest of nan psychological $2,000 level, wherever nan precious metallic would apt garner important support from a horizontal line that links aggregate anterior grounds highs complete nan past 4 years.

When monitoring these levels, it’s important to usage different forms of method analysis, specified a candlestick patterns and indicators, to corroborate a resumption of nan longer-term uptrend successful nan commodity.

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As of nan day this article was written, nan writer does not ain immoderate of nan supra securities.