Gold surged to its fourth new record high in five days on Wednesday, climbing to $3,052. The day saw both a higher daily high and a higher daily low, with a relatively narrow trading range. The lowest price reached during the session was $3,023. Strength in the market will be confirmed by Wednesday’s closing price. At the time of writing, gold is trading in the upper half of the day’s range and is on course to achieve its highest-ever daily closing price, positioning it for a potential further rally.
Resistance Level Broken
Gold’s strong upward momentum has also pushed it through a key resistance zone, previously capped around $3,043. A daily close above this level would further reinforce the bullish trend. Once a resistance level is broken, the next target comes into focus. The next potential price objective is around $3,078, aligning with the 261.8% Fibonacci extension from an ABCD pattern that began in November last year. This level also coincides with potential resistance near the upper trend channel lines, which should be monitored closely.
Bullish Weekly Trend
Despite the continued rally, gold’s price is becoming extended, suggesting that a short-term pullback or consolidation phase could be due. The key question is whether gold will maintain its breakout above $3,043 or encounter resistance before making further gains. This week is on track to be the third consecutive week with both a higher high and a higher low, reinforcing the ongoing uptrend. Last week’s high was $3,005, and a weekly close above this level would confirm a breakout in the longer-term trend.
Support Levels to Watch
The immediate support level for gold is Wednesday’s low of $3,023, with weekly support sitting at $2,982. A move below either level could indicate the next direction for gold. Rising trend channels remain a useful tool in assessing whether the market is overbought or oversold, helping to identify key price targets. If gold faces rejection at one boundary of the trend channel, there is potential for it to test the opposite side. Given that the upper trend channel lines are currently above market prices, they represent potential upside targets.
