We use cookies to offer a better browsing experience, analyze site traffic, personalize content, and serve targeted advertisements. By clicking accept, you consent to our privacy policy & use of cookies. (Privacy Policy)

XAUUSD: Gold Prices Reach Target, What Lies Ahead?

Gold price chart

Gold prices reached a new multi-year high this morning, and have also reached the target of the ascending triangle I highlighted last week. Because the trend is upwards, the price could continue to add to its gains in the days ahead, but the risk-reward ratio for new long positions is poor. The next potential price target is the psychological level of $1500, followed by the $1545 level which is derived if we treat the bull-leg from the May 30 low to the June 25 high as the flag pole of a “flag pole pattern.”

Don’t miss a beat! Follow us on Telegram and Twitter.

In the short-term, the trend will remain bullish as long we trade above the August 2 low of 1429.77. The price is about 60 dollars from the low, and about 54 dollars from the next major targets, hence the risk-reward ratio for a fresh long position is poor. However, if the price corrects 50% of the rally from the August 2, and thereby reaches 1461 level, the risk-reward ratio will improve to 2.54 times the risk.Download our latest quarterly market outlook for our longer-term trade ideas.

Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.