Gold Surges Past $2000 Mark: Optimism Prevails 30/10/2023

In a thrilling turn, gold prices experienced a remarkable surge in last Friday’s trading session, far surpassing market expectations and reaching a pinnacle of success. The bullish trend, as anticipated in the previous technical report, not only met but exceeded its second official target of $2002, soaring to an impressive peak of $2009 per ounce.

Upon delving into the technical aspects, a meticulous analysis of the 4-hour time frame chart reveals a compelling narrative. Gold prices have not only established a strong foothold above the previously breached resistance-now-turned-support at 1977, representing a significant 23.60% correction, but they have also found unwavering support from the simple moving averages. These indicators have consistently held the price from below, bolstering the daily upward trajectory of gold prices.

This encouraging development reinforces our optimistic stance, propelling us towards the third target outlined in the preceding report, ranging between 2014 and 2016. It’s worth noting that an upward cross, coupled with confirmation of breaching the aforementioned level, amplifies and expedites the strength of the upward trend. Anticipation now grows as market observers await the coveted 2028 level, with the potential for gains extending further towards 2036.

However, a note of caution lingers in the air. Should gold prices close below 1977 for at least an hour, negative pressure could mount, compelling a retest of the levels at 1962 and 1958. The current Stochastic indicator, despite its evident negativity, might experience fluctuations until a definitive direction is established, adding an element of suspense to the market dynamics.

It’s essential to acknowledge the elevated risk levels prevailing in the market landscape, exacerbated by ongoing geopolitical tensions. Consequently, market participants should brace themselves for potentially high price volatility, navigating these exciting yet challenging times with caution and strategic acumen.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1981.00	R1: 2014.00
S2: 1962.00	R2: 2028.00
S3: 1948.00	R3:  2047.00