Gold (XAUUSD) hit another recor👍d high Wednesday as the precious metal extends a multi-month rally.

The commodity, which surged about 20% in the first quarter, remains well bid 澳洲幸运5开奖号码历史查询:amid a flight to safety in response to unc🅰ertainty surrounding the Trump administration’s unpredictable tariff policy, which some analysts caution could reignite 澳洲幸运5开奖号码历史查询:inflation and slow economic growth.

Strategists at Bank of America recently released a research note pointing out that the yellow metal will continue to see increased demand this year from 澳洲幸运5开奖号码历史查询:central bank buying, ongoing appetite from retail investorsౠ and a rule change that allows China’s insurance industry to invest in gold for the first time.

Below, we take a closer look at gold’s chart and use 澳洲幸运5开奖号码历史查询:technical analysis to identify crucial price levels that ൲investors may be watchi✤ng.

Shooting Star Pattern Emerges

An intraday turnaround on Tuesday formed a 澳洲幸运5开奖号码历史查询:shooting star, a 澳洲幸运5开奖号码历史查询:candlestick pattern that signals a potential bearish reversal.

It’s worth noting that a similar shooting star pattern emerged on gold’s chart in early February, preceding a month-long 澳洲幸运5开奖号码历史查询:consolidation phase before the precious metal resumed its uptrend.

Meanwhile, the 澳洲幸运5开奖号码历史查询:relative strength index (RSI) confirms bullish price momentum with a reading above the 70 threshold. However, the indicator sits in 澳洲幸运5开奖号码历史查询:overbought territory, raising the possibility for short-term📖 profit-taking.

Let’s apply bars pattern analysis to project where gold’s price may be headed next and also identify three crucial 澳洲幸运5开奖号码历史查询:support levels worth watching during retracements.

Bars Pattern Analysis

Investors can use bars pattern analysis to predict where gold’s price may be headed next by analyzing prior trends on the chart.

When applying the technique, we take the bars comprising the 澳洲幸运5开奖号码历史查询:price action between the two shooting star patterns and overlay them from Tuesday’s closing price. The analysis forecasts another consolidation phase before the commodity resumes its uptrend later this month, potential moving to 𒉰around $3,395 by lat🐭e May.

Crucial Support Levels to Watch

Profit-taking in the commodity could see an initial move down to the $3,048 level, a location on the chart where the price may encounter support near last month’s pre-pullback peak.

Bullion bulls’ inability to defend this level could trigger a decline to around $2,953. This region, currently just above the upward sloping 澳洲幸运5开奖号码历史查询:50-day moving average, may attract buying interest near the precious metal's February 澳洲幸运5开奖号码历史查询:swing high.

Finally, a deeper downturn in the commodity’s price opens the door for a move to lower support at $2,858. Investors may look to 澳洲幸运5开奖号码历史查询:accumulate gold in this 🧸location near the late-February retracement low.

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