• Gold shows strong recovery, climbs to $2432.

  • Strong recovery from recent drop to $2379.

  • Traders cautious at 61.8% fibo level $2434.

  • Next Resistance sits at 71.8% fibo level $2453.

  • Rejection may push Gold to $2412-$2390.

Chart

Despite enough reasons for bullish upward momentum in Gold, there have been several phases of downward movements and prices dipped below $2400, recent dip came at $2364 which was followed by a higher low at $2379 and today Gold managed to negate the downward shift when recovery reached $2432, at striking distance from key 61.8% fibo level $2434

Currently we are witnessing some consolidation below $2432 as Gold trades around $2423-$2428, further break below $2420 will extend decline to next leg lower $2412-$2407 while next support is seen located at $2400 below which way opens to further drop to $2390 

If bears dominate, we expect to witness a deeper sell off once $2390 is breached followed by day/week close below the zone and this will turn short term trend bearish.

On the flip side, strong break above $2435 will usher in further bullish momentum which will target immediate resistance which aligns with premium zone 78.6% fibo level $2453

The views of the article are based on price action studies, technical analysis and chart-based studies. The author does not hold positions on items he writes about. The views expressed are for educational purposes and are not trading advice.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD struggles near 1.0550 amid dour mood

EUR/USD struggles near 1.0550 amid dour mood

EUR/USD struggles near 1.0550 in the European morning on Thursday. The pair faces headwinds from risk-off flows due to rising geopolitical conflict between Russia and Ukraine and worries over the potential US tariffs on the EU. ECB- and Fedspeak are awaited. 

EUR/USD News
GBP/USD trades around 1.2650, upside potential seems limited

GBP/USD trades around 1.2650, upside potential seems limited

GBP/USD keeps its range near 1.2650 in early European trading on Thursday. The pair's sidetrend could be attributed to the softer US Dollar and a risk-aversion market environment. Traders stay cautious amid rife geopolitical tensions and a light economic calendar. Fedspeak eyed. 

GBP/USD News
Gold needs acceptance above 2,660 to unleash additional recovery

Gold needs acceptance above 2,660 to unleash additional recovery

Gold price is sitting at the highest level in over a week above the $2,650 barrier in the Asian trading hours on Thursday. All eyes remain on the speeches from several US Federal Reserve (Fed) policymakers and Russia and Ukraine geopolitical updates, in the absence of top-tier US economic data releases.   

Gold News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu (SHIB) trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

Read more
Sticky UK services inflation to keep BoE cutting gradually

Sticky UK services inflation to keep BoE cutting gradually

Services inflation is set to bounce around 5% into the winter, while headline CPI could get close to 3% in January. That reduces the chance of a rate cut in December, but in the spring, we think there is still a good chance the Bank of England will accelerate its easing cycle.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Majors

Cryptocurrencies

Signatures