Gold is the cusp of another major breakout, after the yellow-metal rallied to its highest trading level since late-October 2012 last week.
Gold price technical analysis shows that the metal has a strong bullish bias while the price trades above the $1,765 level.
Gold medium-term price trend
Gold could be set to rally above the $1,800 level this week, after bulls finally managed to overcome the May 2020 trading high last week.
Gold technical analysis over the medium-term shows that September 2012 trading higher, around the $1,800 level remains the near-term bullish target.
A breakout above the $1,800 could see the gold price rallying sharply higher towards the $1,855 level, or possibly gold’s all-time high, just above the $1,900 level.
Traders should also note that a bullish inverted head-and-shoulders pattern on the mentioned time frame is pointing to more gains towards the $1,900 level.
Gold short-term price trend
Gold technical analysis shows that the metal has a short-term bullish bias while the price trades above the $1,744 level.
The recent rally above the $1,765 level has invalidated a bearish pattern, with substantial upside potential.
According to the size of the invalidated pattern, the price of gold could be about to rally towards the $1,855 area.
If price stays above the head of the bearish pattern this week, around the $1,765 level, then further short-term strength should be expected.
Gold technical summary
Gold technical analysis shows that a breakout above the $1,765 resistance level has finally taken place. The $1,855 and $1,900 levels are seen as possible upside targets.