Gold Approaching the $4,000 Target: A Campaign Five Years in the Making

Gold continues to advance toward a key target level that was first identified in 2019. The metal is now just seven points away from $4,000, marking significant progress in a multi-year campaign.

A Position Held Since 2019

In 2019, a position was opened in GLD (the gold ETF) based on Point and Figure (PNF) chart counts that revealed two major price targets. The first target was above $2,000, which gold reached before entering a very prolonged trading range. The second projection pointed to levels above $4,000—the target now within reach.

That original GLD position remains open, as the price action continues to align with the projections from the Point and Figure analysis.

Seven Points Away

Gold currently sits just seven points from the $4,000 mark. The expectation for gold to move above $4,000 has been in place for quite some time, and the market is now positioned at this critical juncture.

Levels to Overcome

There are specific levels that need to be overcome for gold to successfully breach the $4,000 threshold. The current market structure includes what appears to be a last speculative move up.

The Largest Triangular Reaction

The most recent triangular reaction in gold’s price structure is notable for being the largest one in the current campaign. This larger consolidation pattern indicates that supply is now influencing price more significantly, particularly after an opposing force has entered the market.

Swing Structure and What Follows

When an opposing force comes into the market in this manner, the swing structure pattern suggests a specific sequence: a reaction followed by a climactic run. The question now is whether this pattern could carry gold above the $4,000 target.

Still on Trajectory

So far, gold remains on the trajectory toward exceeding $4,000. The combination of the Point and Figure count projections from 2019 and the current swing structure dynamics support the view that gold is positioned for this move.

The coming price action at and around the $4,000 level will determine whether this campaign, which began over five years ago, can achieve its second major target.

Disclaimer: This content is for educational purposes only and should not be considered financial advice.