I'm loving the multi-year cup and handle pattern in the price of gold (XAUUSD). Does anyone have price targets?
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4 comments
Hey @chrome34, I’ve noticed that too. The base of the cup formed back in December 2015, just above $1,000. It’s been quite a journey since then. Gold breaking out now is pretty exciting.
Absolutely. I love the cup and handle pattern. It's usually a bullish signal, even more so when there is no resistance ahead, as is the case here. With gold breaking out, I’m curious about where you guys see the price headed by 2026.
Well, considering the breakout, I'd say we could see some significant upward movement. Historically, the depth of the cup can help estimate the target price. Since the bottom was around $1,050 and the peak before the handle was around $2,070, we're looking at $1,020 upside. Adding that to the breakout point around $2,070, returns a $3,090 price target.
That sounds reasonable. I’m a bit more conservative, though. I think gold could hit $2,800 by 2026, given the current economic conditions and the fact that gold tends to perform well in uncertain times. The breakout is a strong signal, but there’s always some resistance to consider.