Gold Price Prediction: Will Gold Break Into a New High Above $4,900?

Gold has been moving in a tight and slightly confusing way over the past few days. After pushing higher earlier in the week, price pulled back and is now stuck between key levels. The gold price seems to be swinging within the range of $4,785 to $4,838. 

One analyst says reaching $4,900 is only a matter of time. Another is watching support at $4,780 and selling resistance near $4,830. The gold price is coiling, and a break is coming.

A rising channel that ran out of steam

We had a look at the gold charts from Allie and Shirley, and the picture is consistent. The gold price is trading near $4,807, down slightly on the session. On Allie's chart, price quickly fell below $4,800 and is now testing support around $4,780. 

That level is important because buyers have been stepping in there. Monday's low was marked at $4,643, and Wednesday's high was $4,871. The gold price has been making higher lows and higher highs, but the momentum has slowed.

On Shirley's chart, the gold price is trading between $4,785 and $4,838. She notes that the overall trend for gold is one of correction followed by a rebound. Reaching $4,900, she says, is only a matter of time. The range-bound trading needs to break. If gold breaks above the $4,838 to $4,856 range this Friday, the target becomes a test of $4,900.

The resistance levels are clear on both charts. On the upside, watch $4,830 to $4,850. That is where sellers have been stepping in. On the downside, support sits at $4,780 to $4,790. That is where buyers have been defending. The gold price is caught between these two zones.

Short-term trader vs. long term bull – both watching gold

Allie is taking a short-term trading approach. She recommends trying to buy in the 4780 to 4790 range, with targets at $4,800, $4,810, and $4,830. On the upside, she sees $4,830 to $4,850 as a resistance zone where traders can try selling with a small position. Her strategy is based on the current range. Buy support, sell resistance. Do not chase.

Shirley is taking a long-term view. The correction is temporary, but the bounce is inevitable. $4,900 is the level she’s targeting, and she’s convinced it won’t be long before gold reaches this level. All it takes for this to happen is a breakout from the range between $4,838 and $4,856.

Where the gold price goes from here

Gold is at a critical juncture. The trading range is between $4,785 to $4,838. A drop below $4,780 will bring into focus $4,700, and then on to Monday’s low at $4,643. An upside breakout above $4,856 will give rise to the next level of resistance at $4,900 and then on.

The short-term traders are playing the range. The longer-term bulls are waiting for the breakout. The gold price is the only thing left to decide which side wins. Shirley says $4,900 is a matter of time. Allie says trade the range until it breaks. Both are right, just on different timeframes.

CoinCodex's 1-month gold price forecast places the price at $5,275.08, well above the current $4,800 level. That forecast sees a rally toward the $5,000 zone and higher.