Global gold prices have seen a remarkable rally over the past week, breaking through major resistance levels and attracting significant market attention. But with price now approaching a critical supply zone, traders are beginning to anticipate a possible pullback. Here’s a detailed look at the current technical landscape of gold.
Key Breakout and Resistance Zone in Focus
Last week, gold’s spot price witnessed a strong upward move, with the breakout above the $3,265 level marking a major turning point. This level had previously acted as a protected ceiling, and its breach confirmed the formation of a powerful support base that further fueled bullish sentiment.
Currently, gold is trading near the $3,370 mark, facing a strong resistance zone. This area aligns with the projected targets of many buyers and could serve as a psychological barrier, increasing the chances of a meaningful correction.
More specifically, the price is now entering the $3,372 to $3,415 range — a sharp daily supply zone that has created a Hidden Supply area. This zone coincides with a major daily high, suggesting that a pullback from this region is highly plausible. Traders should prepare for potential bearish reactions if price fails to break through convincingly.
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Despite the bearish signals emerging from this resistance, it’s crucial to recognize that the overall trend on the 4-hour (H4) chart remains bullish. The trendline that defines this upward structure continues to provide primary support and could act as a key level during any downside retracement. Monitoring price action around this trendline will be essential for identifying continuation or reversal signals in the short term.
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