Gold Price Forecast Talking Points:
- For nine years the 1920 level loomed large for Gold prices[1], as this was the prior all-time-high set in 2011.
- In late-July, an aggressive bullish trend in Gold prices took out that level on the way to a fresh all-time-high at 2075.
- After a two-month round of digestion, Gold bulls are back, threatening to push a bullish breakout from a falling wedge formation.
- The analysis contained in article relies on price action[2] and chart formations[3]. To learn more about price action or chart patterns, check out our DailyFX Education[4] section.
Gold Prices Threaten Bullish Breakout
It’s now been a couple of months that the bullish trend in Gold has been on pause; and this comes after an aggressive topside trend had taken-over this summer. After digesting over a two-month pattern from mid-April into mid-June, bulls took over to build a rally that drove for much of the next two months.
In late-July, Gold prices finally set a fresh all-time-high, taking out the 1920 level that loomed large for more than nine years after initially being set in September of 2011. But when that price was encountered by the recent advance in late-July, it could barely pause the move as buyers continued to push the bid. This eventually allowed for a break-through the psychological 2,000 level until, eventually a fresh all-time-high was set on August 7th. But that same day showed the build of a bearish engulfing candlestick[5] which will often be followed with the aim of bearish continuation; and that led to a strong pullback in early-August that saw as much as $200 taken-out.
In the months since, it’s been a steady
