Gold (GOLD) prices climbed to set a new record high on Tuesday as investors move into the precious metal amid rising expectations that the Federal Reserve will 澳洲幸运5官方开奖结果体彩网:lower its benchmark interest rate in September. Falling rates increase the non-yielding commodity’s demand by reducing its opportunity holding cost relative to interest bearing assets, such as 澳洲幸运5官方开奖结果体彩网:fixed-income securities.

Below, we zoom out on gold’s weekly chart to identify important 澳洲幸运5官方开奖结果体彩网:technical levels to watch out for as the commodity continues to gli♎tter.

Breakout from Rectangle Pattern

Gold has trended sharply higher after breaking out above multi-year 澳洲幸运5官方开奖结果体彩网:resistance around $2,000 in November last year. More recently, the precious metal’s price has consolidated within a narrow 澳洲幸运5官方开奖结果体彩网:rectangle since early April, a chart pattern that indicates a 澳洲幸运5官方开奖结果体彩网:continuation of the current uptrend.

This week’s breakout above the rectangle suggests the commodity’s next move higher may have resumed. It’s also worth pointing out that the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) has moved into overbought territory, which confirms strong price momentum, but꧋ also increases the probability for short-term pullbacks.

Watch This Key Level if Bull Run Continues

To gau♊ge where the pꦜrice of gold may be headed next, we can use a bars pattern that takes the trending price action between February and April and apply it to the rectangle’s breakout point.

This technique projects a 澳洲幸运5官方开奖结果体彩网:price target around $2,950, an area on the chart where bullion❀ bulls may also be happy to book profits after two distinct trending legs higher.

Monitor These Important Pullback Levels

Amid periods of profit-taking, there are three important chart levels that may come into play during 澳洲幸运5官方开奖结果体彩网:retracements.

The first area to watch sits at $2,190, or around 12% below the current price, a location that may attract buying interest near a short pause in the commodity’s impulsive move higher be🧔tween February and April.

A breakdown below the level outlined above could see the price decline to around $2,090, where it would likely encounter support from a range of bars following gold’s late𝓀-November breakout.

Finally, a deeper sell-off could lead to a retest of the 澳洲幸运5官方开奖结果体彩网:psychological $2,000 level, where the precious metal would likely garner significant support from a 澳洲幸运5官方开奖结果体彩网:horizontal line that links 🙈multiple prior record highs over the past four years.

When monitoring these levels, it’s important to use other forms of technical analysis, such a 澳洲幸运5官方开奖结果体彩网:candlestick patterns and 澳洲幸运5官方开奖结果体彩网:indicators, to confirm a resumption of the longer-term uptrend in the comm🐬odity.

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As of the date this article was written, the author does not own any of the above securities.