Gold prices have been moving higher in recent sessions, approaching a critical resistance zone. On the daily chart, the market is testing a major supply area that could determine the next trend. Below, we take a closer look at the key technical levels and possible scenarios.
Technical Outlook
- Current Price: $3,447
- Key Resistance: $3,480 – $3,500 (red zone on the chart)
- Major Support: $3,205 – $3,120 (green zone on the chart)
Gold has recently rebounded strongly from the support area around $3,340 – $3,360 and is now approaching a significant resistance zone. This level has historically acted as a strong supply area, limiting further bullish momentum.
Read more about Hammer Candlestick
Possible Scenarios
Breakout and Continuation:
If gold manages to break above the $3,500 level decisively, buyers could push the price toward higher targets around $3,560 – $3,640. This scenario would be supported by fresh liquidity and stronger demand.
Rejection at Resistance:
If gold fails to break through the $3,480 – $3,500 resistance zone, a pullback may occur. The first short-term support lies around $3,360, and a deeper decline could target the stronger support area of $3,205 – $3,120.
Conclusion
Gold is currently trading at a decisive point. Traders should closely monitor the reaction to the $3,500 resistance. A breakout could trigger a new bullish wave, while rejection at this level may lead to a deeper correction.
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