Gold Price Forecast: Extends Rally, but Overbought Signals Hint at Pullback

Gold’s bull trend continued to rise on Wednesday as it hit a new record high of $2,882 before encountering resistance. Following that high gold began to pull back intraday and is currently trading near the midpoint of the day’s trading range, which is at 2,861. During Wednesday’s advance gold exceeded potential targets at $2,856 and $2,874, before stalling a little below the next higher target at $2,889.

That price level is the 161.8% extended target for a rising ABCD pattern that began from the recent swing low at $2,537 (A). It shows a harmonic relationship between the first (AB) and second (CD) upswings. Once that occurs, the possibility of encountering resistance increases.