Gold Price Action: Testing Resistance at $3,036
Gold rallied early on Tuesday, reaching $3,036, before pulling back after hitting the 61.8% Fibonacci retracement level at $3,043. The intraday reversal suggests uncertainty in the market, with traders assessing whether gold can sustain its bullish momentum or enter a more extended correction.
The daily low of $3,007 highlights a key support zone, with gold currently at risk of closing below its midpoint trading range at $3,021.64—a sign of potential weakness.
Key Technical Levels and Market Scenarios
Gold hit a record high of $3,058 last Thursday before retreating to a weekly low of $2,999 on Friday. This level now serves as a key support zone, with two possible scenarios emerging:
- Bullish Breakout: A move above $3,047 would signal renewed strength, potentially driving gold toward its recent peak of $3,058 and beyond. If gold surpasses this level, it could target the $3,080 resistance zone, where multiple Fibonacci extensions align with a key trend channel.
- Bearish Correction: Conversely, if gold drops below $3,007, it could trigger further downside momentum. A break below $2,999 would confirm a deeper correction, with initial support at the 38.2% Fibonacci retracement level at $2,972 and the prior trend high at $2,956. Additionally, the 20-day moving average (MA) at $2,955 provides a crucial support level for short-term price action.
Outlook: Will Gold Extend Its Bull Run or Face a Deeper Pullback?
Gold’s near-term direction hinges on whether it can break above $3,047 or sustain losses below $3,007. If bullish momentum prevails, gold could target new highs, while a failure to hold above key supports may lead to a more pronounced correction.
For a detailed breakdown of upcoming economic events that could impact gold prices, check out our economic calendar.
