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Spot gold at record levels of $2,075

Spot gold at record levels of $2,075

ATH likely to be challenged

Technically speaking, the weekly timeframe shows limited resistance after the breaching of resistance starting at $1,988. This opens the door to a run at $2,070 as the ATH. 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 from the weekly chart that the yellow metal has been working on a bullish pennant pattern for the past 20 months. It is located between $2,009 to $1,934. The pattern is located between $1,949 and $2,000 base support and resistance. Pennant formations are traditionally considered continuation patterns and could lead to a breakout to the upside. 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.

The recent XAU/USD buys show that the price has risen above the bullish Pennant formation, and overtook the $2,000 resistance. This is similar to the weekly scale and opens up the possibility of testing the ATH.

As a result, both the weekly…

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