Gold Market Analysis & Key Levels to Watch
Gold prices tested critical support at $2,864 before rebounding, forming a potential bullish hammer candlestick that signals strength toward key resistance levels at $2,909 and $2,943.
Gold Holds Strong Support, Eyeing Upside Targets
On Wednesday, gold successfully tested a key trendline before bouncing higher. After dipping below Tuesday’s low, buyers regained control at $2,864, triggering an intraday rally that pushed prices up to $2,909. As of this writing, gold is trading in the upper third of today’s price range, starting from $2,894.
A bullish hammer candlestick pattern may be forming, indicating continued bullish momentum rather than a trend reversal. If gold closes near the top of today’s range, this will mark the second-highest historical closing price, just behind Monday’s $2,912 record.
Bullish Hammer Pattern Signals Strength
Despite briefly breaking below Tuesday’s bearish shooting star candlestick, today’s rally suggests that the bullish trend remains intact. The short-term support level at $2,864 is crucial—if it breaks lower, gold could see further downside, with the next key support at $2,853.
This week’s $2,853 low is particularly significant, as gold has maintained six consecutive weeks of higher highs and higher lows. A break below this level could indicate a shift in the long-term bullish trend.
Key Resistance Levels: $2,912 & $2,943
On the upside, a break above today’s high of $2,909 would indicate further strength. However, Monday’s high at $2,912—which marked the highest historical closing price at $2,907—remains a crucial resistance level. Tuesday’s all-time high of $2,943 adds another key barrier.
Gold’s recent surge met Fibonacci extension and projection targets, reinforcing $2,943 as a significant resistance zone. If prices break above this level, upside targets extend to $2,961 and $2,982.
Trend Channel Suggests Higher Price Potential
A large parallel trend channel suggests additional upside if Tuesday’s high is breached. The trendline, confirmed at $2,790, signals a possible continuation of the rally, with higher price targets in sight.
Conclusion: Bullish Momentum Continues
Gold’s price action remains bullish, with strong support at $2,864 and key resistance at $2,909, $2,912, and $2,943. A break above these levels could push prices toward $2,961 and $2,982, reinforcing the long-term uptrend.
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