Last Friday’s gold price action provided valuable insights into its potential near-term direction. Let’s break down the key levels and possible scenarios:
Recent Price Action
- Support found above $2,393
- Resistance encountered below $2,448
This pattern suggests that gold may continue its downward trend following a short-term rise.
Potential Bearish Scenario
If gold faces resistance below $2,433 today, we could see a downward move targeting the $2,380 – $2,360 range.
Key Levels to Watch
Resistance levels:
- Short-term resistance: $2,432 – $2,433
- Significant resistance: $2,447 – $2,448
Support levels:
- Short-term support: $2,380 – $2,381
- Significant support: $2,360 – $2,361
Trading Strategy
Traders might consider:
- Looking for selling opportunities near the $2,432 – $2,433 resistance zone
- Setting profit targets around the $2,380 – $2,360 support area
- Being cautious of any breaks above $2,447, which could signal a potential trend reversal
Remember to always use proper risk management techniques and consider multiple timeframes when making trading decisions based on this analysis. Keep an eye on broader market factors that could influence gold prices, such as economic data releases and geopolitical events.