Gold (XAU/USD) Price Forecast: Achieves First Breakout Target, Path Opens to $3,603
NEW YORK (September 3) Gold surged to $3,578, confirming a bull breakout above the prior high of $3,500. Near-term consolidation is possible, but long-term projections suggest targets at $3,779 and $3,966 remain achievable.
Gold Confirms Breakout, Faces First Pullback Test
Gold rallied to a new record high of $3,578 on Wednesday before meeting resistance. That level completed a 100% projection for a rising ABCD pattern within the recent symmetrical triangle consolidation. Importantly, Tuesday’s close above the prior record high of $3,500 confirmed a long-term bull trend continuation. This shows strong underlying demand, though the next pullback will be crucial in revealing how supply and demand dynamics may shift.
Short-Term Extension Risks
An initial higher target lies at $3,603, the 127.2% Fibonacci extension of the recent bearish correction. Gold has advanced for ten consecutive sessions since the August 20 reversal, raising the possibility of a short-term overbought condition. Sustaining momentum at record levels may become difficult, making consolidation or a pullback increasingly likely before higher targets are pursued.
Long-Term Upside Objectives
Despite near-term exhaustion risks, the technical backdrop remains clearly bullish. The symmetrical triangle’s measuring objective suggests a potential move toward $3,779, while the prior measured upswing points toward $3,966. Each was calculated based on the change in price, reinforcing the case for further upside eventually.
Key Support Levels
Should a pullback develop, potential support rests first at the $3,500 breakout level. Additional support zones include the prior swing highs between $3,451 and $3,409. Holding above these levels would signal healthy consolidation within a still-intact bull trend.
Outlook
While speculation about short covering may explain part of the rally, the breakout stands on its own strength. Typically, the first pullback following a major breakout offers an important test of demand and often sets up the next leg higher.
FXEmpire
