Home Featured Spot gold closes in on new record highs of $2,075

Spot gold closes in on new record highs of $2,075

Spot gold closes in on new record highs of $2,075

ATH likely to be challenged

Technically, there is limited resistance on the weekly timeframe after the breach of resistance at $1,988. This allows for a run to the ATH at $2,070. You may recall that I highlighted the daily timeframe’s price action in the Weekly Market Briefing, paying specific attention to a clear-cut Pennant formation (italics):

We can see the potential bullish pennant patterns that the yellow gold has been creating since March 20th, based on the weekly chart. The range is between $2,009 – $1,934. The pattern is located between $1,949 and $2,000 base support and resistance. Pennant formations have been viewed as continuation patterns. A breakout to the upside is possible. This could lead to the price breaking through $2,000 resistance and eventually reaching all-time highs of $2,075, technically representing double top resistance.

You can see that the price broke above the bullish Pennant formation. This has seen it overthrow $2,000 resistance. This is similar to the weekly scale and opens up the possibility of testing the ATH.

As a result, both the daily and weekly…

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