Gold has been on an impressive run, with many similarities to the early 2025 breakout. The triangle formation, support from the 50-day moving average, and positioning all point to a potential move higher. In fact, if history repeats itself, gold could rise by around 25% before the euphoria subsides. The big trend line connecting the highs comes in right around the 4k level, adding credence to this possibility. While it’s impossible to predict with certainty where gold will go next, this setup is certainly worth keeping an eye on.

Firstly, let’s take a look at the chart. The triangle formation that has been developing since mid-February is a clear indication of a potential breakout. Triangles are considered to be continuation patterns, meaning they usually signal that the trend will continue. In this case, the trend has been upward for gold, and the triangle suggests that it could continue to move higher.

Another key factor in gold’s favor is its support from the 50-day moving average. This simple yet powerful indicator has consistently provided buy signals throughout the year, and it continues to do so now. When a stock or asset is above its 50-day moving average, it is generally considered to be in a buying zone.

Finally, positioning is also worth considering. Institutional investors have been net buyers of gold ETFs for several months now, which suggests that they are bullish on the metal’s prospects. This could lead to increased demand and higher prices.

Of course, there are no guarantees in the world of finance, and it’s important to keep a level head when evaluating any potential investment opportunity. However, the combination of these factors – along with the historical precedent set by the early 2025 breakout – makes for an intriguing setup.

If history does repeat itself, gold could rise by around 25% before the euphoria subsides. This would take it to around the 4k level, which is right in line with the big trend line connecting the highs. While it’s impossible to predict with certainty where gold will go next, this setup is certainly worth keeping an eye on. As always, do your own research and consult with a financial advisor before making any investment decisions.