On December 22, gold opened higher in early trading and surged relentlessly, even breaking through the previous all-time high of 4,385. The breakout at this key level signals further accelerated upward momentum. Our stance has been clear—bullish on gold, advocating buying on dips, and maintaining a long position even after new highs are reached.
Last Friday, we highlighted that gold would likely extend its gains after surpassing 4,353. This week, gold opened strongly, breaking through the 4,353 resistance and rallying with significant volume. Now that gold has breached the prior peak of 4,380, historical patterns suggest substantial follow-through gains after such record-breaking moves. As expected, the breakout has led to another powerful surge, with this upward wave targeting 4,450 and 4,500.
Following the record high, gold’s bullish momentum remains robust, briefly touching 4,420 before retracing. A pullback during the European session could present a second chance for another upward push. Traders should use this retracement as an opportunity to position for further gains in the European and U.S. sessions. The key support zone to watch is 4,375/80, which now serves as a critical level for potential long entries. If the pullback is shallow, traders can consider entering long positions upon signs of a minor bottom formation, using this zone as a defensive level. Missing this move could mean losing out on further upside.
Trading suggestion: Buy gold in the 4,375/80 zone, targeting 4,420 and 4,450. A small pullback after breaking 4,420 could offer another chance to add long positions.
Disclaimer: The content is for informational purposes only and does not constitute investment advice. Investors should conduct their own risk assessment before trading.
Comments