Gold Price Forecast: Analysis of Trends Amidst Weakening Bullish Momentum
Gold Price Forecast: Current Trends and Potential Resistance
The latest gold price forecast highlights a significant appreciation in gold prices as it reached a new record high of 2,686 before facing resistance that led to an intraday pullback. Gold’s recent move up is noteworthy, but the weakening bullish momentum suggests caution among investors.
Potential Resistance Areas to Watch
Since Tuesday’s advance, gold has been trading in a potential resistance zone marked by targets from two ascending ABCD patterns. The first pivot level emerged around 2,661, while a smaller rising ABCD pattern recently confirmed resistance at 2,675. The market may see a temporary top due to this rejected bullish momentum.
Weakness Signs and Support Levels
A drop below the day’s low of 2,655 indicates weakening bullish sentiment and could signal a deeper pullback. Key areas for support can be traced back to the 38.2% Fibonacci retracement at 2,633 and the more critical 50% level around 2,616, aligning with this week’s low at 2,614. Should prices fall below 2,600, it strengthens the sellers’ position.
Outlook: Potential Continuation of the Bullish Trend
Despite potential pullbacks, a decisive rally above the 2,686 mark is essential for maintaining an upward trend. Sustaining this level could lead gold into the next price zone starting at 2,724, completing a long-term ascending ABCD pattern. Further potential targets exist at 2,754, marking a significant extended retracement.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.