Gold Price Forecast: Retreats After Hitting $2,882 Record High

Following a new record high of $2,882 hit during Wednesday session, gold pulled back on Thursday and will likely leave a lower daily high and lower daily low for the day. Yesterday’s high follows the completion of an extended upside target from a rising ABCD pattern where the CD leg of the advance was 161.8% (golden ratio) of the first leg up, labeled AB.

Therefore, the advance in the price of gold during the second leg up has a harmonic relationship with the price change seen in the first leg. Once that happens, a potential pivot level has been identified. Given the subsequent bearish reaction following the $2, 882, it looks like the market recognized the area around the price target. Although it was not a direct hit, as the target was at $2,889, it was close enough given the bearish reaction.