Gold Price Forecast: Bull Trend Holds Above Key Averages

Author: Bruce Powers

Published: January 8, 2026

Overview

The article discusses the current state of gold prices, highlighting a consolidation phase above key short-term averages. The analysis indicates that bullish momentum remains intact, with potential for a breakout to new record highs.

Current Price Action

Gold has recently experienced a dip to a three-day low of $4,408 but has successfully tested support at the 10-day moving average. Following this low, buyers have stepped in, pushing the price back up to $4,479, indicating a potential formation of a bull hammer candle pattern.

Trend Analysis

The bullish trend structure remains intact, as evidenced by the bounce off the 10-day average. Key support is identified at the recent low of $4,274, which has created a higher swing low. Maintaining levels above the 10-day average is crucial for sustaining short-term strength. A pullback to the 20-day average, currently at $4,377, would not alter the bullish outlook but would indicate a need for consolidation.

Demand Indicators

The rising 20-day average is approaching the previous trend high of $4,381, suggesting improving demand. If the 20-day line intersects with the price before a breakout occurs, it could lead to increased volatility and a potential upside continuation above $4,500. For gold to reach new record highs above $4,550, it must hold above the dynamic support near the 20-day line.

Monthly Candlestick Patterns

Despite the overall bullish trend, a potential bearish shooting star candlestick pattern was completed in December. This pattern could indicate downward pressure unless there is a breakdown below December’s low of $4,164. Historical patterns from previous months suggest that similar situations have led to upward resolutions, indicating that further short-term consolidation may occur before momentum resumes towards new highs.

Conclusion

The article emphasizes the importance of monitoring key support levels and the behavior of moving averages in determining the future direction of gold prices. While the current trend remains bullish, traders should be cautious of potential consolidation phases that could precede significant price movements.

About the Author

Bruce Powers is a seasoned finance professional with over 20 years of experience in financial markets. He holds an MBA and is a CMT® charter holder, having worked as head of trading strategy at hedge funds and as a corporate advisor for trading firms.