Gold: Highest Weekly Close in History – Correction or Continuation?

NEW YORK (December 12) Gold achieved its primary upside objective Friday with a high of $4,353 and a higher daily low of $4,257, completing a measured move where the advance from the recent higher swing low matched the gain seen in the first leg up from October’s low. Today’s high was close enough to the $4,356 target given the subsequent bearish reaction from today’s high. Sellers stepped in aggressively after the high and continue dominating at writing, pushing price into the lower half of the day’s range and raising the risk of further corrective behavior on any weak close.

Next Upside Objectives

With the initial measured move now recognized, attention shifts to the second-phase target: a 127.2% projection of the current leg pointing to $4,454. However, the standing record high at $4,381 must first be decisively cleared before that longer extension becomes realistic.

Strong Weekly Structure

Despite the intraday pullback, gold remains set to finish the week in the top third of its range and deliver the highest weekly close in history. A daily close above last week’s high of $4,264 will confirm a weekly breakout and trend continuation, marking the third consecutive week of higher weekly highs and lows while also securing the third straight weekly close above the two top channel lines that failed to sustain October’s initial breakouts.

Dynamic Support Levels

The two most significant dynamic support areas lie at the 10-day average, currently $4,225, and the 20-day average at $4,170. Although gold has progressed steadily higher since October’s low, momentum has remained largely muted—now facing its most important test yet as it attempts a convincing breakout into new record territory and signals unambiguous bull trend continuation.

Outlook

Gold has checked the $4,353–$4,356 measured box and produced the strongest weekly close ever, but immediate selling off the high warns of potential near-term consolidation or correction. Hold the 10-day and 20-day averages on any weakness and clear $4,381 to resume the assault toward $4,454; failure to defend those averages risks deeper profit-taking while the larger uptrend stays intact.

FXEmpire