Current price: 5130
Key point: 5120
Our preferred strategy: Buy positions above 5120 with a first target of 5250 and then a second target of 5335.
Alternative scenario: Stop loss and trend reversal upon breaking the 5100 level, targeting the 5000 level.
Technical commentary
Gold managed to break through the pivotal resistance level of 5120 after breaking out of the bullish reversal wedge pattern, following a price rally from the key support level of 4880.
Gold is expected to continue its upward trend after retesting the 5120 level, reaching 5250 and then 5335.
