GOLD looking to break new all-time highs, targets suggest $3K

Can GOLD break new highs? If so, where are some good potential sell targets?

With Coronavirus all over the news and the Fed printing money at unprecedented levels, its not surprising to see a re-surging interest in Gold over the past couple of months. Is it possible that Gold now has the momentum it needs to push new highs? If so, what are some potential price targets? For the answer, we look to Fibonacci extensions.

On the price chart, two Fibonacci tools have been used: a retracement and an extension. One measures the pullback from the highs at $1800, which we see was nearly 50% to the tick at $1033. This has set the local range for now unless new highs can be achieved.

In anticipation of a breakout to new highs, we take the second tool, a Fibonacci extension and run it from the previous high to the retracement point to get some potential profit targets.

If Gold can break above the previous highs of $1800, its not unreasonable to see a test of the 0.618 extension at $2041. But this could be a fake-out and we could see Gold come back and retest $1666 before going higher.

In the event that Gold can break above $2041, the next profit target according to Fibonacci theory would be $2648. I labeled this the FOMO trader target because I would expect to start seeing gold all over the news around this point.

Depending on how much hysteria develops in the market, its even possible to see Gold at $3630, which would be an extension of 1.618 (the Golden target). I call this the BTC/TSLA target because these charts are a good reference if you want to see what happens when mob mentality sets in.

As for now, keep an eye on a clean breakout above $1925. A good stop loss is found around $1500 if you have a tight risk tolerance, otherwise keeping under $1400 gives you extra protection with the 0.236 Fib retracement level.

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