Gold Technical Analysis and Near-Term Outlook
Gold is struggling to reach the next major objective at $1857 after briefly overcoming the $1837 target of the confirmed $1676 double bottom. A small double top around $1846.3/$1844.7 has formed but the $1817.8 confirmation point of this pattern has held so far. The pullback from $1846.3 looks corrective and the outlook for gold in the coming weeks remains bullish. However, there is still downside risk, which makes this is an extremely tight near-term call for the next few days.
Should gold overcome $1832 early tomorrow look for a test of $1842. Settling above $1842 will clear the way for $1857, which then connects to $1874 and higher.
Conversely, should gold take out $1815 first, look for $1804 to be challenged. Closing below $1815 will confirm the double top and settling below $1804 will call for a test of the double top’s $1788 target. At this point, there is no strong evidence to call for a move below $1788.
This is a brief analysis for the next day or so. Our weekly Metals Commentary and daily updates are much more detailed and thorough energy price forecasts that cover key COMEX precious metals futures contracts and LME Non-Ferrous (Base) metals, spot gold, the gold/silver ratio, and gold ETFs. If you are interested in learning more, please sign up for a complimentary four-week trial.