Gold Price Targets: XAU/USD At Key Technical Support- GLD Outlook

Gold prices are trading just above long-term technical support with XAU/USD holding within the weekly opening-range. While the broader outlook remains constructive, the near-term risk remains for another run at the lows with price trading within a bear flag formation off the monthly low. These are the updated targets and invalidation levels that matter on the XAU/USD charts.


(Click on image to enlarge)

Gold Price Chart - XAU/USD Daily - GLD Trade Outlook - XAU Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; Gold on Tradingview

Technical Outlook: In my latest Gold Price Outlook we noted that XAU/USD had, “responded to key support with the recent recovery now targeting the first resistance target at 1472.” Price briefly registered a high at 1478 before pulling back this week with gold holding a tight weekly opening-range just above a long-term key support zone at 1451/61.

The broader gold sell-off has continued to trade within the confines of a descending pitchfork formation extending off the yearly highs. Look for daily resistance at 1479 backed by 61.8% retracement of the monthly decline at 1489. Ultimately a breach/close above the upper parallel would be needed to shift the broader focus back to the long-side. A break below key support at 1451 would risk substantial losses in gold with such a scenario targeting initial support objectives at 1433.


(Click on image to enlarge)

Gold Price Chart - XAU/USD 120min - GLD Trade Outlook - XAU Technical Forecast

Notes: A closer look at gold price action shows XAU/USD trading within the confines an ascending channel formation extending of the November 11th low with price testing the lower parallel into the US open. Initial support remains at 1460/61 – IF price is heading higher on this stretch, losses should be limited to this threshold.

Resistance stands just above the weekly opening-range highs at 1479 with a breach there targeting a larger recovery towards the 100% extension at 1485 and the 1489- both areas of interest of possible topside exhaustion IF reached.

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