Chartbook: US Chart Gold (XAU): Extending break of May-August ascending triangle

Extended choppy trade below the 3440 resistance through the May-August period to trace out an ascending triangle. Subsequent breakout here  in late-August and follow-through above the April high at 3500 see prices reaching fresh record high above 3600 level.

Bullish price action highlights potential for further gains to target 3745, 1.618 Fibonacci extension of the 1999/2011 rally measured from 2015 low. Higher still, will see ascending triangle break objective at 3760. Beyond this will see room for extension to the 3800 level. Clearance here, if seen, will then turn focus to the 4000 psychological level.

However, steep gains from the 2022 year low see weekly and monthly charts pushing deep into overbought areas and caution corrective pullback. Meanwhile, support is raised to the 3500/3440, April and May highs. Below this will open up room for deeper correction to support at the 3250 and 3120, June and May corrective lows.