Gold’s bullish momentum has hit resistance, raising concerns about a potential reversal. Traders are closely watching key levels, with a decisive move above $2,955 or below $2,917 expected to determine the next market trend.
Gold Price Action and Market Trends
Despite the weak follow-through from Wednesday’s bull pennant breakout, gold prices remained near trend highs on Friday. However, the market experienced low volatility, with narrow trading ranges persisting for the third consecutive session.
Key Resistance and Potential Breakdown
Friday’s price action suggests that a lower daily high and lower daily low may be forming for the first time in five sessions. If gold closes near current levels, it will mark its third straight session closing around the same price while sitting at the upper boundary of the bull pennant continuation pattern.
This signals resistance at the breakout level, indicating a potential failed breakout. If gold fails to break higher soon, bearish risks could increase, leading to a downside move.
Technical Levels to Watch
- Bullish Breakout Confirmation: A sustained break above $2,955 could reignite bullish momentum.
- Bearish Breakdown Risk: A move below $2,917 could signal a reversal and deeper correction.
Traders should monitor these critical levels as gold’s next directional move could be significant. Stay updated for real-time market analysis and insights on gold price trends and technical signals.
