Gold’s relentless rally continues as technicals point to further upside
GOLD has been on an impressive rally since the start of 2024, with its bullish momentum extending into 2025. As at 9 am on Mar 14, gold had surged 14 per cent from the year’s opening price to hit US$2,990. The technical setup remains firmly bullish, suggesting that further upside potential remains in the precious metal. Below are a few technical observations that support our bullish view of gold.
Gold prices have found support above the 20 and 50-day EMA, which serve as dynamic support levels in trending markets, providing traders with an indication of whether an asset is maintaining its momentum. When prices consistently trade above these moving averages, it signals that buyers remain in control, reinforcing the strength of the trend. Gold has successfully found support above these levels, suggesting that the prevailing bullish momentum remains intact.
Gold prices underwent a period of consolidation after reaching a previous peak on Feb 24, 2025, forming a symmetrical triangle pattern. This pattern is characterised by converging trend lines that reflect market indecision before a breakout. Given that gold is in a strong uptrend, a breakout from the triangle signals a continuation of the prevailing trend.
Historically, similar formations have been observed in gold’s price action, often leading to significant moves once resistance is breached. The breakout projects a measured technical target of US$3,033, derived by measuring the height of the triangle and extending it from the breakout point.
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements on a scale from 0 to 100. Readings above 50 suggest that buyers are in control, while levels above 70 indicate overbought conditions. Currently, gold’s RSI remains above 50, confirming the bullish sentiment without showing signs of exhaustion.
This supports the case for continued upward movement. With no immediate signs of exhaustion in gold’s price action, the bullish outlook remains intact. The breakout from the symmetrical triangle sets an initial target of US$3,033, while a longer-term objective of US$3,300 is also on the horizon. The next key psychological resistance level stands at US$3,000, which may act as a short-term barrier before further upside unfolds. As long as gold continues to find support above key technical levels and maintains its bullish momentum, the path of least resistance remains higher. Investors and traders should closely monitor key price levels and indicators, as gold’s strong technical structure suggests that further gains may still be ahead.
The writer is senior strategist at Phillip Nova
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