Gold has registered an impressive rally and it looks determined to reach fresh new highs. It has appreciated by almost 1.39% since yesterday's opening price. The outlook for the yellow metal is bullish, so its price could jump above $1,611 soon if it stabilizes above the $1,600 psychological level.
The global risk has pushed Gold higher, the upside movement is natural. A further Gold advance could signal a potential USD correction in the short term. The US dollar is somehow expected to drop when the Gold price moves higher. You should know that the dollar remains bullish despite a minor drop.
GOLD price has managed to break out from the major chart pattern and now is fighting hard to reach the $1,611 pivot point. The price has moved sideways according to the H4 chart, yesterday's breakout has signaled that it would resume the upside movement.
The triangle represents only an accumulation, the price has recaptured bullish energy and now it should climb way higher. I've drawn a minor ascending pitchfork hoping that I'll catch a potential leg higher. Gold has confirmed the lower median line (LML) as a strong dynamic support, the price has managed to jump above the median line (ML) and above the upper median line (uml) of the descending pitchfork, announcing a potential increase towards the upper median line (uml) of the ascending pitchfork.
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According to the bullish outlook, the precious metal is expected to increase further if it stays above the $1,600 level and above the median line (ML). The first upward target is seen at $1,611, while the next major potential target could be represented by the upper median line (uml). The price is expected to increase after its failure to approach and reach the median line (ml) of the descending pitchfork.
Another higher high could confirm a potential broader upside movement in the medium to the long term. A consolidation right above the broken resistance levels could give us a great chance to go long on Gold.
