Gold is on the upswing

Gold has hit record highs, moving into territory above 2800. Strong buying following the November-December correction suggests the end of the correction phase and the beginning of a new growth cycle.

A breakout to new highs activates a Fibonacci expansion pattern. The fundamental upside momentum in gold started in October 2023 and formed a peak at the end of October 2024. This was followed by a correction to 76.4% of the initial rally, which is typical of strong bull markets. The formal technical target now looks to be the $3,400 per troy ounce area. This is more than 20% above current levels but is achievable in the two- to four-quarter timeframe.