Gold Price Forecast: Bullish Reversal Signals Further Gains
By Bruce Powers | Updated: Feb 21, 2026
Current Market Overview
Gold prices have surged to a six-day high of $5,088, successfully reclaiming both the 10-day and 20-day moving averages. This bullish movement indicates a potential continuation of the upward trend that began from a swing low of $4,402 earlier in February.
Technical Analysis
The daily chart for spot gold reveals a rising ABCD pattern, which is a technical formation that suggests further price increases. The recent price action shows a decisive advance from the low, forming a lower swing high at $5,092, followed by a higher swing low at $4,655. A second leg up reached a high of $5,119 before a pullback to support at $4,842, indicating a higher swing low.
Price Targets
The analysis identifies an initial upside target at $5,345, where the CD advance matches the rise seen in the AB leg of the ABCD pattern. This target is significant as it coincides with a 78.6% Fibonacci retracement level of the previous bearish correction. The confluence of these indicators enhances the importance of this price level as a potential resistance point.
Potential for Further Upside
There is a strong possibility that gold could continue its ascent towards the record high of $5,598. The reclaiming of moving averages suggests a recovery in demand, indicating that the recent bearish correction of 21.4% may have reached its bottom. Support was confirmed at the confluence of the 50-day moving average and the top of a long-term rising channel, reinforcing the bullish outlook.
Conclusion
The current technical indicators and price patterns suggest that gold is poised for further gains. Traders and investors should monitor these developments closely, as the market dynamics could lead to significant price movements in the near future.