Gold explodes to new all time record high above $2,130

Right at the start of the Asian session today, gold exploded through a previously noted and extremely important double top that has been in place since 2020. That was from a high that year at 2,075.47 and then in 20222 from a high at 2,070. On Friday it was noted here, as gold lifted towards the May high (at 2,062,99), that an extension through that level was very likely. In truth though, I did not expect it to surge immediately above 2,075, but it did and the close on Friday evening, at 2,072.22 was a clear warning of that potential. The charge higher on the Asian opening saw it rise officially to as high as 2,135.39, but it may well have traded higher than that in many non-bank portals. Now some days back you were all warned about the potential for a wave 3 extension to take the price to as high as 2,130. That is clearly on record for those that do not remember the update.The catalyst for the overnight surge seems to have come from the attack on a US warship in the Red Sea. Well, that wave 3 move has been met and more. Gold has now backed off on profit-taking after such an explosive move. The correction target is a minimum of 38.2% of 1931.74 to 2,135.39 which indicates 2,057.59 as a technical support level of note. Of course the original 2020 high, at 2,075.47 is also one that lies ahead of that and that has so far not been tested on this current pullback, but of course there is a gap between the current low at 2,081.80 this morning. We shall see if that does get filled or not. Gold is currently trading at 2,082.50