Hello Traders! 👋

What are your thoughts on Gold?

Gold has been trading within the highlighted support and resistance zones for several weeks, forming a well-defined trading range. This price action reflects an ongoing corrective and sideways phase, with the market repeatedly rotating between the upper and lower boundaries of the range without establishing a sustained trend.

From a technical perspective, price has successfully broken above the descending trendline that had capped the market for weeks and is now completing a pullback toward the breakout area. As long as Gold remains above the highlighted support zone, our bias remains bullish, and we expect the short-term uptrend to continue toward the highlighted resistance area, which aligns with the 0.50 and 0.618 Fibonacci retracement levels.

A decisive breakout and close above the highlighted resistance zone would confirm the end of the corrective phase, a breakout from the multi-week trading range, and the beginning of a new short-term bullish leg. Such a move would likely strengthen bullish momentum and pave the way for further upside.

On the other hand, a break below the highlighted support zone would invalidate the bullish scenario, increasing the likelihood of an extended corrective move toward lower support levels.

Finally, traders should remain cautious ahead of the market open. Given the latest geopolitical developments, there is a possibility that Gold opens with a price gap, which could result in elevated volatility during the first trading session of the week.

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