Gold Price Prediction: Approaches 4,718 R5 Pivot

• Gold has just recorded its biggest up week since the October high, putting renewed focus on the latest Gold price prediction as the metal trades close to a key technical resistance level. Gold has three remaining trading days this year to potentially approach the yearly R5 pivot level near 4,718, with new yearly pivot levels due to be calculated in January. At the same time, on the monthly timeframe, Gold is already at the most overbought level in its history, which is why expectations don’t see it going much higher than 4,718.

• This cautious stance forms part of a wider discussion about the policy environment surrounding commodity-linked sectors, where proposed tax changes have sparked concern about potential bankruptcies and an outflow of skilled professionals, adding further uncertainty around the broader ecosystem that interacts with bullion markets.

I don’t see it going much higher than 4718.

• Financially, the current debate includes warnings about possible budget shortfalls if key industries contract, with some proposing an alternative approach of raising profit tax instead of increasing other burdens. These themes continue to shape sentiment as market participants weigh Gold price prediction scenarios against macro policy risk.

• In the broader context, additional legislative amendments under discussion have been linked to potential declines in employment and reductions in personal income and profit tax revenues, underscoring the knock-on effects that structural policy shifts could have on economic activity even as Gold news remains driven primarily by price momentum.

• The current market setup shows that upside beyond the R5 pivot is not the base case, reinforcing the view that current levels already reflect stretched conditions. With Gold trading near major resistance and the market historically overbought, the latest Gold price prediction narrative reflects a balance between strong technical momentum and caution about how far the rally can extend, especially as year-end pivots and macro policy risks remain in focus.

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My Take: Gold’s surge to historically overbought levels near 4,718 creates a compelling risk-reward setup heading into year-end. While momentum remains strong, the R5 pivot represents a natural ceiling where profit-taking could emerge, especially with macro policy uncertainty adding pressure.

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Source: CyclesFan