The weekly COMEX gold chart has confirmed a textbook cup and handle continuation pattern that has been forming since gold all-time high in August 2020. The pattern suggests a measured move target of $2,600-$2,650 per ounce, with the breakout above $2,500 providing technical confirmation that the multi-year consolidation phase has ended.
The cup portion formed between August 2020 and April 2024, with the rounded bottom reaching approximately $1,620 in late 2022. The handle formed as a shallow consolidation between April and August 2024. The breakout above $2,450 in mid-August confirmed the pattern, with volume on the breakout week being 45% above the 20-week average.
Technical indicators support the bullish thesis. Weekly RSI is at 68.5, still below the 70 overbought threshold. The MACD histogram is expanding above the signal line, and ADX has risen to 32, indicating a strengthening trend. Key resistance at $2,550, with the pattern target at $2,630. Support sits at $2,480-$2,500.
