Chart of the Week: Gold bulls charge to fresh daily highs with $2,000 eyed

As per the prior analysis on the back of last Friday's Nonfarm Payrolls, Gold Price Forecast: Stellar Nonfarm Payrolls beat keeps US dollar bid and XAU hamstrung, the price eventually broke to the upside regardless:

The price has reached a prior resistance level on the hourly chart and is being bought from there, near a 61.8% Fibonacci retracement level. Further demand would be expected to see the price of gold extend higher in the forthcoming hours and for the open sessions next week. 

Gold, live market

As illustrated, the price has shot higher and is on the verge of meeting a -61.8% Fibonacci extension of the correction of the daily impulse:

$2.00, however, is neither here nor there in the grander scheme of things. The focus for the open and for the week ahead should be on a correction of Friday's rally. This will be where traders can assess the risk profile on Monday and measure from where a continuation to the upside might come from:

In the above monthly chart, the Fibonacci retracements are based on the potential of a slight continuation to start the week off before a correction takes place towards old resistance, now expected to act as support. This falls in near the 38.2% Fibo at $1,899.

However, the bulls are in control and in the absence of the Federal Reserve, given the Ukraine crisis, gold would be a more favourable bullish bet. So long as geopolitics continue to drive the market, gold can continue to attract a safe-haven bid. If there is going to be a meanwhile correction, however, the $1,950 could be tested as old daily resistance that meets a 38.2% Fibonacci retracement of the current bullish impulse:

For now, however, the momentum is with the bulls and the hourly time frame can be monitored for deceleration and bearish structure from where profit taking would be expected. This would then likely result in a cascade of offers and equate to a daily correction. $2,000 is otherwise on the bull's radar.