Gold (XAU) has forged incredible price milestones as of late. The precious yellow metal is trending on all levels, trading and hovering at $2,382 at press time. The metal may continue to project a bullish onset, but not without experiencing a few price corrections as several assets do in their wake to prosper ahead.
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Gold is now inching towards a new price, ATH. The precious yellow metal has gained incredible strength as of late, banking on the decaying global economic prospects to tempt investors.
However, XAU’s road towards a new price high does not look easy. Per Rashad Hajiyev, a notable financial expert, gold may undergo a few price retests before ascending and breaching the price level of $2,400. The asset may peak nevertheless, but an immediate breakout is not on the cards, as Hajiyev later adds.
In a post uploaded on X, Hajiyev shared that gold is most likely to retest its $2,400 mark, crash to $2,300 for some time, and later spike again to breach the said number.
Retest, in general trading analogy, refers to a critical resistance or support line that an asset often makes a comeback to. Once the asset manages to “retest” or put in efforts to cross the said mark, then it embraces a potential breakout price pattern. Gold is mimicking a similar pattern, retesting such critical levels in efforts to breach them in the near future.
Per Hajiyev, gold (XAU) can drop to trade at the $2,300 price threshold sometime next week before it embraces another bullish streak.
“I believe gold is closer to the top and do not expect an immediate breakout. Most likely, gold will test the $2,400 mark tomorrow and then head back to lows of $2,300 sometime next week. Also note that as gold is 1.3% higher than senior gold miners, GDX gained 1.4%; this is not convincing enough for me. I closed my long silver futures position today.”
When Can Gold Rally?
According to the analysis presented by Hajiyev, gold can start challenging and approaching a new price high by June 2024.
“Gold may attempt to start challenging an all-time high sometime in June.”
Additionally, decaying economic prospects around the world are expected to help gold rally past predicted thresholds. The asset is expected to keep climbing to new price highs in the wake of the China and Russia gold piling sprees, giving the metal a robust price boost.
Also Read: Don’t Sell Gold & Silver, Buy More When it Dips’ Says US Millionaire
The rising US debt metrics, with geopolitical tensions at a record high, are tempting users to adopt a diversification technique. The pivot entails investor sentiment shifting towards gold, helping it spike to new price thresholds.
