Support for Gold Prices Holds Firm, But Its Longevity is Uncertain

As experts in the stock market and trading, we understand the importance of staying informed about market movements. Today, we are focusing on the downward pressure that could potentially take gold lower in the near future.

After falling below the 20-Day MA and testing it as resistance, gold is displaying bearish behavior within a downtrend. A drop below this week’s low of 2,353 indicates a likely bearish continuation with next lower targets around 2,332 and potentially even lower price zones.

Looking ahead, support near the bottom of the consolidation range begins at 2,305, where a falling ABCD pattern extended by the Fibonacci ratio and a rising parallel trend channel indicate potential bearish patterns. A breakdown from this formation would occur on a decline below the June 10 swing low of 2,294.

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To see signs of strength in gold, a rally above the 20-Day MA is needed, which would confirm a bullish reversal. The 50-Day MA may also act as support for an upside move, with yesterday’s high of 2,401 marking the next potential upside pivot level.

Considering the length of prior corrections in gold since April, the current correction is still considered too short to complete. With at least one more week of potential downside, there is still time for gold to test lower price levels before reaching a bottom.

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