Gold (XAUUSD) is set to remain in the spotlight to start the week after setting a new record high Friday above the closely watched $3,000/oz level.

The precious metal received a boost last week as investors flocked to the safe-haven asset amid concerns that the Trump administration’s unpredictable tariff policies could slow economic growth and accelerate inflation.

Gold gained 2.6% last week and has jumped 14% since the start of the year as of Friday’s close. By comparison, the S&P 500 stock index has fallen about 8% from its record high set less than four weeks ago amid the political and economic uncertainty.

Below, we take a closer look at gold’s chart and apply technical analysis to point out crucial price levels that investors may be watching.

Pennant Pattern Breakout

Gold consolidated within a two-week pennant before breaking out above the pattern’s top trendline last Thursday, signaling a continuation of the commodity’s longer-term uptrend.

Moreover, the relative strength index (RSI) confirms bullish price momentum with a reading above 50, though a push this week into overbought territory could increase the likelihood of near-term profit-taking.

Let’s turn to gold’s chart to forecast how a continuation move may play out and also identify several crucial support levels worth monitoring during potential pullbacks.

Bars Pattern Analysis

To forecast how a continuation move higher in the commodity might look, investors can use bars pattern analysis, a technique that analyzes prior trends to make future price projections.

When applying the analysis to gold’s chart, we take the price bars comprising the asset’s uptrend from August to October last year and overlay them from last Thursday’s breakout point. This forecasts an upside target of around $3,365 an ounce, around 13% above Friday’s closing price. 

The prior trending move, which commenced following a breakout from an earlier pennant pattern on the chart, played out over 57 trading days, indicating a similar move higher could last until early June this year if price action rhymes.

Crucial Support Levels to Monitor

Profit-taking in the commodity could see gold’s price initially revisit the $2,833 level. This area on the chart may provide support near the pennant pattern’s lower trendline and the upward sloping 50-day moving average.

The next lower level to monitor sits around $2,790. A pullback to this location could be met with buying interest from investors seeking entry points near the yellow metal’s prominent late-October swing high.

Finally, a deeper retracement could lead to a retest of lower support at the $2,721 level. This region, positioned about 9% below the commodity’s Friday close, may attract bids near two closely aligned peaks that formed on the chart in November and December last year.

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As of the date this article was written, the author does not own any of the above securities.