The gold market is experiencing a robust rally in 2024, as prices have surged above the long-term pivot of $2,075. This pivotal level, which has been the subject of discussion among experts and analysts for several years, marks a significant development in the gold market landscape.
Following a period of consolidation that began after the onset of the COVID-19 pandemic in 2020, the market has shown signs of pent-up energy, as evidenced by inside bars on the yearly candles for 2021 and 2022. This compression in price has now given way to a surge in 2023, setting the stage for further bullish momentum.
While exact price targets are difficult to pinpoint in such a bullish trend, the ascending broadening wedge pattern indicates the potential for prices to ascend towards the upper limit of the wedge, estimated around $3,000. However, market participants should be prepared for significant volatility accompanying this rally, necessitating prudent risk management strategies.
Central to navigating the evolving landscape of the gold market will be effective risk management, as the market ventures into uncharted territory. The breakthrough above the $2,075 pivot marks a new chapter in the gold market’s trajectory, offering promising opportunities for those who approach it with diligence and insight.
