Gold prices reached a new trend high on Friday, testing near-term support. The precious metal now targets $5,345 as its next key upside level.
Gold triggered an upside breakout to $5,258. It appears set to confirm a close above its prior high of $5,250. This advance also broke a small bull pennant pattern that formed over four days this week.
The $5,345 target represents a significant price zone. It combines a 78.6% Fibonacci retracement and a 100% projected target for a rising ABCD pattern. Gold had a sharp advance followed by a 21.4% decline over three days before this current bounce from a February 2 low of $4,402.
Key near-term support stands at this week’s higher weekly low of $5,091. Additional support sits at the 50-day average of $4,794. Trading in February stayed within January’s wide price range of $4,310 to $5,263, marking the first “inside month” since July.