Gold Price Forecast: Hits Record High Before Bearish Reversal

It looks like gold took one more gasp on Friday to reach a slightly new record high of $2,887 before a bearish reversal led to intraday selling. At the time of this writing, it is on track to close the day in a weak position, in the lower half of the day’s trading range. If it does end the day near current prices, gold will have completed a bearish shooting star candlestick pattern.

A bearish signal would then be indicated by a drop below today’s low of $2,852, currently. Since the bearish one-day pattern is occurring following a strong rally of as much as $304 or 11.8% as of today’s new record, and at a previously identified potential resistance zone, it should be given attention as it might indicate the beginning of a bearish retracement. The performance measurement starts from the December swing low (C).