Gold Futures Analysis: Bearish Doji Formation Signals Steep Slide Ahead
Since Feb. 28, 2025, gold futures have been on a rollercoaster ride, teetering at a psychological height of $3000 levels amidst trade tensions and geopolitical uncertainties. With a bearish doji formation looming, a sharp decline is anticipated to kick off this Friday.
The escalating tariff trade tussles and retaliatory moves by various countries have propelled gold to new heights, making it a prime target for bearish investors. Additionally, the ongoing conflicts in Ukraine and the upcoming interest rate decision by the Federal Reserve further add to the uncertainty surrounding gold’s future trajectory.
Russian President Vladimir Putin’s support for a US proposal for a ceasefire in Ukraine, along with President Donald Trump’s push for higher interest rates to strengthen the dollar, has created a volatile environment for gold investors. The possibility of a partial US government shutdown and the specter of a global trade war only add to the chaos in the markets.
In this turbulent atmosphere, gold is likely to face a challenging week ahead. A close below the significant support at 20 DMA at $2928 could signal a downward trend, while a breakout above the immediate resistance at $3034 may present a buying opportunity with a stop-loss at $3074.
On the technical front, the daily chart shows a bullish trend if gold futures can sustain above $3011, with a potential test of the immediate resistance at $3034. However, failure to find a breakout could lead to a drop below the support at $2968. In the weekly chart, gold futures appear indecisive, trading at a psychological high that could attract bearish investors and trigger a steep correction.
Disclaimer: Readers are advised to exercise caution when trading gold futures, as market conditions are subject to change based on various factors.
By analyzing these factors and technical indicators, investors can make informed decisions about their gold holdings and prepare for potential market movements in the coming days.