With the approaching end of the month and quarter, it makes sense to analyze the long-term chart of the gold price. In all likelihood, the precious metal will reach its highest quarter-end price in history.
Since 2020, the gold price has been on a sideways trend, fluctuating between USD 1,700 and almost USD 2,100. However, gold recently broke through to a new all-time high of USD 2,218, signaling an interesting development.
Chance of increase up to 2,500 USD
The height of the trading range (sideways trend) offers a potential upside of USD 400, which equates to a price target of USD 2,500. This price target corresponds to the 161.8% Fibonacci projection of the total correction phase between 2011 and December 2015.
Stopovers on the way to 2,500 USD
On the way to this ambitious price target, there is an important intermediate point at USD 2,254, which represents a Fibonacci retracement level.
Risk management
From a risk perspective, the long-term price chart of gold also provides valuable information. To prevent the breakout from failing, it is important that the old breakout levels of 2,072/2,070 USD are not undercut in the future.
Gold price support and resistance levels
Conclusion
The technical analysis of the gold price points to a potential increase to USD 2,500. This price target is supported by several factors, including the height of the trading range, Fibonacci projections and risk management.
Source: HSBC
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