Gold is Trading at Record High Levels—These Are The Key Price Levels to Watch

Gold (XAUUSD) prices have rallied over the past week and are near record-high levels after a wave of profit-taking in late July.

Investors have bid up the precious metal amid uncertainty over the outlook for the U.S. economy and expectations that the Federal Reserve will cut interest rates in September, following July’s weaker-than-expected employment report released last Friday. Gold tends to benefit from its reputation as a safe-haven asset during times of economic uncertainty, while lower rates also support the non-yielding asset. Reports that the U.S. will impose tariffs on imports of gold bars have also underpinned gains this week.

The commodity has soared about 30% this year, boosted by concerns over the Trump administration’s unpredictable trade policies—amid uncertainty about how tariffs will affect the economy—and ongoing tensions in the Middle East. Spot gold was trading at just under $3,400 per troy ounce recently.

Below, we take a closer look at the spot gold price chart and use technical analysis to identify key levels that investors will likely be watching.

Bullish Ascending Triangle Takes Shape

Since a shooting star pattern marked gold’s high in late April, the commodity has consolidated in an ascending triangle, a bullish chart formation that signals a potential continuation of the longer-term uptrend.

More recently, the price has rallied from the triangle’s lower trendline and reclaimed the respected 50-day moving average (MA), a move that has coincided with the relative strength index crossing back into bullish territory.

Let’s identify two key overhead areas to watch on gold’s chart if the recent upward momentum continues and also point out major support levels worth monitoring during possible retracements.

Key Overhead Areas to Watch

The first overhead area to watch sits around $3,435. This location on the chart would likely provide significant resistance near four distinct peaks that form the ascending triangle’s top trendline.

Investors can forecast a bullish price target above gold’s all-time high by using the measured move technique, a tool that analyzes chart patterns to project future price movements. When applying this analysis, we calculate the distance of the ascending triangle near its widest section and add that amount to the pattern’s top trendline. For instance, we add $300 to $3,435, which projects a target of $3,735, about 10% above the commodity’s current trading levels.

Major Support Levels Worth Monitoring

During retracements, investors should initially monitor how gold’s price responds to the $3,245 level. The metal may find support in this area near a range of corresponding price action on the chart between April and June.

Finally, a breakdown below the ascending triangle’s lower trendline could see the commodity’s price revisit lower support around $3,150. Investors may look to accumulate gold in this region near the April peak, which closely aligns with the completion of a pullback to the 50-day MA in mid-May.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.