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Heads up, gold bulls!

The shiny metal has been on a tear for the past few days, but it might be closing in on some upside targets.

Check out these long-term resistance levels.

Gold (XAU/USD): Weekly

Gold (XAU/USD) Weekly Forex Chart

Gold (XAU/USD) Weekly Forex Chart by TradingView

Can gold head any higher from here?

Thanks to subdued U.S. inflation reports, the commodity managed to chalk up another strong run that lifted it past the mid-channel area of interest on the weekly time frame.

Price is also up to the 61.8% Fibonacci retracement level near the $1,900 resistance, which might convince bulls to book profits for now.

Sustained bullish momentum past this point could spur a test of the descending channel top closer to the key $2,000 barrier.

Note that Stochastic is already indicating overbought conditions, which means that buyers could use a break and allow sellers to take over. If that happens, gold could slump back to nearby support levels like the area of interest at $1,800.

Stronger selling pressure might even drag it back down to the swing low near $1,600 or the channel bottom.

However, the 100 SMA is above the 200 SMA to confirm that market players are very much in the mood to buy gold these days.

If you’re hoping to catch the rally, don’t forget to keep tabs on headlines affecting overall risk sentiment, as well as global interest rate expectations.

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.