Gold prices retreated from their all-time high of $3,500 on Tuesday, signaling potential short-term exhaustion as traders locked in profits. The precious metal is now testing key support levels, with technical indicators suggesting a possible correction before the next major move.
Gold’s Rally Stalls – Signs of a Temporary Top
After a historic surge, gold prices fell to 3,368∗∗,forminga∗∗bearishshootingstarcandlestickpattern∗∗—aclassicreversalsignal.Thiscomesaftergoldcompleteda∗∗161.83,368∗∗,forminga∗∗bearishshootingstarcandlestickpattern∗∗—aclassicreversalsignal.Thiscomesaftergoldcompleteda∗∗161.83,498.
Key Technical Developments:
- Shooting Star Pattern: A close near today’s low confirms bearish momentum.
- Support Levels to Watch:
- Immediate support at $3,372 (today’s low).
- Next major support at $3,246 (previous swing high).
- 20-Day Moving Average ($3,153) – A critical level if the pullback deepens.
Why Is Gold Pulling Back?
The recent rally saw gold break two ascending trend channels, indicating overbought conditions and speculative buying. With global uncertainty still high, profit-taking was inevitable.
Potential Scenarios Ahead:
- Shallow Pullback: If gold holds above $3,246, it could consolidate before another push higher.
- Deeper Correction: A drop to the 20-Day MA ($3,153) would test bullish conviction. A bounce here could reignite the uptrend.
- Breakdown Risk: A close below $3,150 could signal a larger retracement.
What’s Next for Gold Prices?
While the long-term bullish trend remains intact, short-term traders should watch for:
- Confirmation of the shooting star pattern (break below $3,372).
- Buying interest near $3,246 or the 20-Day MA.
- Fed policy and dollar movements, which could drive the next major move.
Key Takeaways for Traders:
✅ Profit-taking triggered the pullback after gold hit 3,500.✅∗∗3,500.✅∗∗3,246 and 3,153arecriticalsupportzones.∗∗✅∗∗Areboundfromsupportcouldsignalthenextleghigher.∗∗✅∗∗Abreakbelow3,153arecriticalsupportzones.∗∗✅∗∗Areboundfromsupportcouldsignalthenextleghigher.∗∗✅∗∗Abreakbelow3,150 may extend the correction.**
Stay updated with the latest gold price forecasts and market trends as this pullback unfolds.
