- Gold Price Analysis: Will the Bullish Momentum Continue or Will We See a Bearish Trend Reversal?
- Gold Enters Consolidation Phase After Failing to Reach All-Time High
- Concerns Arise as Gold Pulls Back Towards Key Support Levels
Gold experienced a slight retreat on Monday, falling towards its 20-day simple moving average (SMA) at 2,670 following five consecutive days of gains.
This pullback has raised concerns among investors about the possibility of gold forming a lower high in the near future. The proximity of the 20-day and 50-day SMAs to a potential bearish cross suggests that sentiment could turn negative, although certain key support levels may offer some protection.
The 2,672 area, which corresponds to the 23.6% Fibonacci retracement and the short-term SMAs, is currently acting as a stronghold for the bears. If this level is breached, the next target will be 2,635, where the lower boundary of a significant bullish channel is situated.
Subsequently, attention will shift to the 38.2% Fibonacci level at $2,600, a breakdown of which could draw focus towards the $2,450-2,550 range where the 50% Fibonacci level is located. A drop below $2,510 would signal a potential reversal towards 2,483 or 2,440.
On the upside, a recovery in gold prices could lead to a target of 2,755, with a successful breakout potentially paving the way for a push towards the all-time high of 2,789 and beyond to 2,800. Further gains may propel prices towards 2,850 and eventually to the critical trendline zone of 2,900–2,950.
To sum up, gold’s bullish momentum is at risk with a move above 2,755 removing downside risks, while a drop below 2,510 could signal a bearish trend reversal in the short-term outlook.