Gold Price Forecast: Bullish Reversal Signals Emerging
By Bruce Powers | Published: Feb 06, 2026
Overview
Gold has shown signs of a bullish reversal, rebounding from a key Fibonacci retracement level and reclaiming the 20-day moving average. This technical positioning suggests potential for higher prices in the near future.
Daily Chart Analysis
On the daily chart, gold has formed a potential rising ABCD pattern, indicating a second leg up is expected unless there are signs of failure. The recent high of $4,971 established a higher swing low at $4,655. A breakout above the previous swing high of $5,092 is necessary to confirm this bullish pattern. Resistance was tested near the 10-day average, which is currently at $5,016.
Weekly Chart Insights
The weekly chart highlights significant support at a low of $4,002, where buyers have regained control, forming a bullish hammer pattern. A breakout above the week’s high of $5,092 would confirm this bullish hammer and counter the previous bearish shooting star pattern. Despite the potential for short-term weakness, initial upside targets remain intact.
Key Technical Levels
- Current Support: $4,002
- Recent Low: $4,655
- Resistance Level: $5,092
- Fibonacci Retracement Target: $5,141
- 78.6% Fibonacci Resistance: $5,342
Conclusion
Gold is positioned for a potential bullish reversal, with key technical indicators suggesting a move higher. Traders should watch for a breakout above the resistance levels to confirm the bullish sentiment.