GOLD → False Breakout. Can Buyers Recover?
Hello, dear friends! Ben here!
Gold has made a false breakout at $2,637 and is now searching for strong support. The current situation is highly complex, both fundamentally and technically.
Fundamentally, the situation remains challenging. Gold's weakness is influenced by the Fed's hawkish stance and the strength of the US Dollar. However, upward pressure on gold persists due to other factors, including the escalation of conflicts in Eastern Europe and the Middle East, Trump’s protectionist policies targeting Europe and Asia, and rising geopolitical risks worldwide.
Technically, after the false breakout at $2,637 (previously a resistance level), the price is now heading toward a new testing zone around $2,622. Below that, the ascending channel support at $2,606 could act as the lower boundary where buyers may start an aggressive play.
Key Support Levels: $2,622, $2,606
Key Resistance Levels: $2,637, $2,647, $2,665
Overall, I lean toward a medium-term bearish trend. However, the local situation remains tense and complicated. If the bulls manage to hold their ground within the ascending channel, gold may continue its upward move.
But! If buyers fail to maintain their position within the channel, a correction could extend the downward momentum further, leading to deeper declines.
Best regards, Bentradegold!
Gold has made a false breakout at $2,637 and is now searching for strong support. The current situation is highly complex, both fundamentally and technically.
Fundamentally, the situation remains challenging. Gold's weakness is influenced by the Fed's hawkish stance and the strength of the US Dollar. However, upward pressure on gold persists due to other factors, including the escalation of conflicts in Eastern Europe and the Middle East, Trump’s protectionist policies targeting Europe and Asia, and rising geopolitical risks worldwide.
Technically, after the false breakout at $2,637 (previously a resistance level), the price is now heading toward a new testing zone around $2,622. Below that, the ascending channel support at $2,606 could act as the lower boundary where buyers may start an aggressive play.
Key Support Levels: $2,622, $2,606
Key Resistance Levels: $2,637, $2,647, $2,665
Overall, I lean toward a medium-term bearish trend. However, the local situation remains tense and complicated. If the bulls manage to hold their ground within the ascending channel, gold may continue its upward move.
But! If buyers fail to maintain their position within the channel, a correction could extend the downward momentum further, leading to deeper declines.
Best regards, Bentradegold!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.