Gold Bulls Eyeing Potential Cup-And-Handle Pattern

Published 06/19/2020, 09:21 AM
Updated 07/09/2023, 06:31 AM

The slow and steady rise in gold prices over the past 4 years has created seen the market recover most of its losses incurred since the 2011 highs.

It’s also helped to form a potentially bullish price pattern: the Cup and Handle pattern. This spring I showed how the “cup” was in formation… now it appears to be nearly complete.

The rally has gold continuing higher toward the 2011 price peak, also marked by the 261.8 Fibonacci extension (of the 1979 high / 1999 low).

Gold Monthly Chart

This has formed a symmetrical “cup”. Now we wait to see if the “handle” forms, which historically is needed before and upside blast-off takes place.

Gold bulls would love to see a pullback that re-energizes buyers and a burst back up through the 261.8 Fibonacci level.

That type of breakout action from this pattern could see gold target $3000.

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