# Brace Yourself: Lower Targets for Gold on the Horizon
At Extreme Investor Network, we strive to keep our readers ahead of the curve for all things trading and investing. In the ever-fluctuating world of commodities, gold, often seen as a safe haven, currently displays signs that it may be headed towards lower price targets before the current correction runs its course.
### The Bullish Attempt That Failed
On December 10, gold made an ambitious attempt to break out of a descending parallel trend channel. However, this bullish endeavor quickly faltered, resulting in a retreat back below the upper channel line. This failure is critical; it signals that a sharp reversal may be in the works. The bearish momentum we’ve seen since this reversal indicates that sellers could maintain control for the foreseeable future.
This dynamic often leads investors to question where the bottom may lie. While it’s not guaranteed that prices will descend to the bottom of the channel, the current market behavior suggests that there’s a real possibility of this occurring. This reinforces the idea that those who trade in gold should prepare for potential downward movements.
### Recognizing Bearish Indicators
Analyzing the price movements, particularly the decline from the recent swing high of 2,726, we see gold has shown a tendency to drop below its 20-day moving average (MA), illustrated by the purple line in our charts. What’s telling here is how the recent highs were rejected when they tested this 20-day MA, reinforcing this level as resistance—a classic bearish signal.
On both Tuesday and Wednesday, as prices approached the 20-day MA, they were consistently met with downward pressure. This behavior signals that previous support levels are being compromised and now serving as new resistance. Compounding this bearish sentiment is a recent advance that tested resistance near the low of a small rising trendline, which began from the recent swing low of 2,605.
### Next Potential Target: 78.6% Retracement at 2,576
For traders looking for potential support zones, the 78.6% Fibonacci retracement level at 2,576 might come into play next. However, if the current trend channel remains intact, it’s entirely plausible that we could see a retest of the most recent swing low at 2,537. Should this level fail to halt the decline, keep your sights set on the next critical area around 2,473. This target not only aligns with the 61.8% Fibonacci retracement for the upswing from the May swing low but also coincides with a falling ABCD pattern, marking 2,475 as another significant price point.
### Stay Informed with the Latest Market Trends
As investors, staying updated is crucial. We recommend checking out our comprehensive [economic calendar](#), which provides details on all today’s significant economic events that could further influence market movements.
At Extreme Investor Network, we are dedicated to arming our readers with cutting-edge insights and actionable strategies—keeping you informed, prepared, and ready to navigate the intricate world of investing.
Remember, while these analyses provide insight into potential market movements, always consider your personal investment strategy and consult with financial experts as necessary. Happy trading!